Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co., Ltd.
Nanjing Putian Telecommunications Co., Ltd.
Annual Report 2023
[April 2024]
Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co., Ltd.
Annual Report 2023
Section I Important Notes, Contents and Interpretations
The Board of Directors, Board of Supervisors, directors, supervisors and
senior executives of the Company guarantee the truthfulness, accuracy and
completeness of the Annual Report, and ensure that there are no false records,
misleading statements or major omissions, and they will be held individually
and jointly liable for any legal liability that may arise.
Li Langping, the person in charge of the Company, Liao Rongchao, the person
in charge of accounting, and Zhang Jingxia, the person in charge of the
accounting firm (accounting supervisor), declare that they guarantee the
truthfulness, accuracy and completeness of the financial report represented in
this Annual Report.
All directors attended the board meeting at which this Annual Report was
considered.
This Annual Report contains forward-looking statements concerning future
plans such as the Company's business plan. It is important to note that these
statements are not intended to constitute a substantive commitment to
investors, and investors and related parties should exercise sufficient risk
awareness and carefully consider the differences among plans, forecasts, and
commitments.
In "Section III Discussion and Analysis of the Management Team"， the
Company has provided an analysis of the potential risks that may affect the
Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co., Ltd.
Company's development. We encourage investors to review this section
carefully.
The Company planed not to distribute cash dividends and bonus shares, or
increase its share capital from provident fund.
Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co., Ltd.
Contents
Section I Important Notes, Contents and Interpretations .............................................................2
Section II Company Profile and Main Financial Indicators .........................................................7
Section III Discussion and Analysis of the Management Team ..................................................12
Section IV Corporate Governance ................................................................................................ 31
Section V Environmental and Social Responsibilities ................................................................. 54
Section VI Important Matters ....................................................................................................... 55
Section VII Changes in Shares and Shareholders ......................................................................100
Section VIII Information on Preferred Shares .......................................................................... 108
Section IX Information on Bonds ................................................................................................ 109
Section X Financial Report........................................................................................................... 111
Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co., Ltd.
Contents of Documents for Future Reference
(I) Financial statements containing the signatures and seals of the person in charge of the Company, the person in charge of
accounting work and the person in charge of the accounting firm (accounting supervisor).
(II) The original audit report containing the seal of the accounting firm and the signatures and seals of the certified public
accountants.
(III) The originals of all Company documents and announcements publicly disclosed during the reporting period.
Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co., Ltd.
Interpretations
Term means Interpretation
Nanjing Putian Telecommunications Co.,
The Company, Company means
Ltd.
China Electronics Technology Group
CETC means
Corporation
CETC Glarun means CETC Glarun Group Co., Ltd.
Nanjing Southern Telecom Co., Ltd. (a
Southern Telecom means
holding subsidiary of the Company)
Nanjing Putian Telege Intelligent
Telege means Building Ltd. (a holding subsidiary of the
Company)
Nanjing Nanman Electrical Co., Ltd. (a
Nanman Electrical means wholly-owned subsidiary of the
Company)
Nanjing Putian Datang Information
Putian Datang means Electronics Co., Ltd. (a holding
subsidiary of the Company)
Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co., Ltd.
Section II Company Profile and Main Financial Indicators
I. Company information
Stock abbreviation NTX B Stock code 200468
Stock exchange Shenzhen Stock Exchange
Chinese name Nanjing Putian Telecommunications Co., Ltd.
Chinese abbreviation Nanjing Putian
English name (if any) Nanjing Putian Telecommunications Co., Ltd.
Legal representative Li Langping
Registered address No.8 Fenghui Avenue, Yuhua Economic Development Zone, Nanjing
Postal code 210039
When the Company was established in 1997, its registered address was Building 1 on the west
side of Ericsson in Jiangning Economic and Technological Development Zone, Nanjing; In
Changes of the Company’s
2003, the registered address of the Company was changed to No.58 Qinhuai Road, Jiangning
registered address
Economic and Technological Development Zone, Nanjing; In 2021, the registered address of the
Company was changed to No.8 Fenghui Avenue, Yuhua Economic Development Zone, Nanjing
Putian Technology Pioneer Park, No.8 Fenghui Avenue, Yuhuatai District, Nanjing City, Jiangsu
Office address
Province
Postal code 210039
Website www.postel.com.cn
E-mail securities@postel.com.cn
II. Contact persons and contact information
Secretary of the Board of Directors Securities representative
Name Li Jing Dai Yuan
Putian Technology Pioneer Park, No.8 Putian Technology Pioneer Park, No.8
Address Fenghui Avenue, Yuhuatai District, Fenghui Avenue, Yuhuatai District,
Nanjing City, Jiangsu Province Nanjing City, Jiangsu Province
Tel. 86-25-69675805 86-25-69675865
Fax 86-25-52416518 86-25-52416518
E-mail lijing@postel.com.cn daiyuan@postel.com.cn
III. Location of information disclosure and provision
Website of the stock exchange where the Company discloses its
Shenzhen Stock Exchange (http://www.szse.cn)
annual report
Names and websites of the media in which the Company
Securities Times, CNINFO (www.cninfo.com.cn)
discloses its annual report
Place where the Annual Report of the Company is prepared Office of the Board of Directors of the Company
Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co., Ltd.
IV. Changes in registration
Unified social credit code 91320000134878054G
Changes in the main business of the Company since its listing
No change
(if any)
When the Company was established in 1997, its controlling
shareholder was China Post and Telecommunications Industry
Corporation (later renamed China Potevio Information Industry
Group Corporation and China Potevio Information Industry
Group Co., Ltd. successively) In 2005, China Potevio
Information Industry Group Corporation transferred all its
Changes of controlling shareholders (if any) shares to China Potevio Information Industry Co., Ltd. free of
charge, and the Company’s controlling shareholder was
changed to China Potevio Information Industry Co., Ltd. In
2022, China Potevio Information Industry Co., Ltd. transferred
all its shares to CETC Glarun Group Co., Ltd. free of charge,
and the Company’s controlling shareholder was changed to
CETC Glarun Group Co., Ltd.
V. Other relevant information
Accounting firms engaged by the Company
WUYIGE Certified Public Accountants LLP (Special General
Name of the accounting firm
Partnership)
Room 2206, Floor 22, No.1 Zhichun Road, Haidian District,
Office address of the accounting firm
Beijing
Names of the signing accountants Xu Zongliang, Guo Zhigang
Sponsor engaged by the Company to perform continuous supervision duties during the reporting period
□Applicable Not applicable
Financial consultant engaged by the Company to perform continuous supervision duties during the reporting period
□Applicable Not applicable
VI. Main accounting data and financial indicators
Does the Company need to retroactively adjust or restate the accounting data of previous years
□Yes No
Increase or decrease in
2023 2022 the current year over 2021
the previous year
Operating revenue
818,334,374.30 879,566,048.96 -6.96% 917,129,674.49
(yuan)
Net profit attributable
to shareholders of the -16,884,077.62 -47,390,545.55 64.37% -138,766,373.70
listed company (yuan)
Net profit attributable
to shareholders of the
listed company after -23,157,886.24 -51,234,544.29 54.80% -141,603,716.82
deducting non-
recurring gains and
Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co., Ltd.
losses (yuan)
Net cash flow from
operating activities -6,017,650.03 -30,726,510.39 80.42% -61,717,528.76
(yuan)
Basic earnings per
-0.080 -0.220 63.64% -0.650
share (yuan/share)
Diluted earnings per
-0.080 -0.220 63.64% -0.650
share (yuan/share)
Weighted average
-124.58% -114.39% -10.19% -105.00%
return on net assets
Increase or decrease at
the end of the current
By the end of 2023 By the end of 2022 year compared with the By the end of 2021
end of the previous
year
Total assets (yuan) 826,241,412.27 891,390,055.62 -7.31% 993,571,982.44
Net assets attributable
to shareholders of the 5,111,258.66 21,995,336.28 -76.76% 65,187,412.69
listed company (yuan)
The lower of the Company's net profit before and after deduction of non-recurring profits and losses for the last three fiscal years
is negative, and the audit report for the latest year shows that there is uncertainty about the Company's ability to continue as a
going concern
□Yes No
The lower of the Company's net profit before and after deduction of non-recurring profits and losses is negative
Yes □No
Item 2023 2022 Remarks
Operating revenue (yuan) 818,334,374.30 879,566,048.96 -
Deducted amount of
14,689,596.38 10,866,001.57 -
operating revenue (yuan)
Amount after deduction of
803,644,777.92 868,700,047.39 -
operating revenue (yuan)
VII. Differences in accounting data under domestic and overseas accounting standards
1. Differences in net profits and net assets in the financial reports disclosed in accordance with
international accounting standards and in accordance with Chinese accounting standards
□Applicable Not applicable
During the reporting period, there is no difference between the net profit and net assets in the financial reports disclosed in
accordance with international accounting standards and Chinese accounting standards.
2. Differences in net profits and net assets in the financial reports disclosed in accordance with overseas
accounting standards and in accordance with Chinese accounting standards
□Applicable Not applicable
During the reporting period, there is no difference between the net profit and net assets in the financial reports disclosed in
accordance with overseas accounting standards and Chinese accounting standards.
Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co., Ltd.
VIII. Main quarterly financial indicators
Unit: yuan
Q1 Q2 Q3 Q4
Operating revenue 178,539,354.70 214,000,522.99 188,206,576.44 237,587,920.17
Net profit attributable
to shareholders of the -9,934,009.57 -1,027,887.35 -5,783,929.78 -138,250.92
listed company
Net profit attributable
to shareholders of the
listed company after
-9,495,883.88 -3,027,854.09 -5,657,847.85 -4,976,300.42
deducting non-
recurring profits and
losses
Net cash flow from
-104,103,173.88 18,020,690.41 -30,038,788.44 110,103,621.88
operating activities
Whether the above financial indicators or the sum of them are significantly different from the relevant financial indicators in the
quarterly report and semi-annual report disclosed by the Company
□Yes No
IX. Items and amounts of non-recurring profits and losses
Applicable □Not applicable
Unit: yuan
Item Amount in 2023 Amount in 2022 Amount in 2021 Description
Profits and losses on
disposal of non-current
assets (including the
-134,939.44 506,839.52 -134,892.35
write-off part of the
provision for
impairment of assets)
Government subsidies
included in the current
profits and losses
(except those closely
related to the
Company's normal
business operations,
and those conforming 1,441,162.29 210,513.19 660,727.46
to national policies,
enjoyed according to
certain standards, and
having a continuous
impact on the
Company's profits and
losses)
Reversal of impairment
provision for
3,413,067.60
receivables separately
tested for impairment
Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co., Ltd.
Profit and loss of debt
588,868.84 2,456,389.38
restructuring
Other non-operating
revenue and expenses
1,049,278.58 2,896,463.54 328,880.05
other than the above
items
Other profit and loss
items that comply with
the definition of non- 717,457.47 817,837.09
recurring profit and
loss
Less: Affected amount
224,119.31 160,760.51 108,335.97
of revenue tax
Affected amount of
minority shareholders' 576,967.41 426,894.09 365,425.45
equity (after tax)
Total 6,273,808.62 3,843,998.74 2,837,343.12 --
Details of other profit and loss items that comply with the definition of non-recurring profit and loss:
Applicable □Not applicable
Other profits and losses that meet the definition of non-recurring profits and losses are mainly investment
income generated from the liquidation of subsidiaries.
Explanation of defining the non-recurring profit and loss items listed in the Explanatory Announcement No.1 on Information
Disclosure by Companies with Public Securities Offerings - Non-recurring Profits and Losses as recurring profit and loss items
□Applicable Not applicable
The Company does not define the non-recurring profit and loss items listed in the Explanatory Announcement No.1 on
Information Disclosure by Companies with Public Securities Offerings as recurring profit and loss items.
Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co., Ltd.
Section III Discussion and Analysis of the Management Team
I. Industry in which the Company operates during the reporting period
According to the data released by the Ministry of Industry and Information Technology, in 2023, China made
every effort to promote the construction of a network powerhouse and a digital nation, and drive the in-depth
integration of the digital economy and the real economy. The main operating indicators of the communication
industry grew steadily, the network infrastructures such as 5G and gigabit optical networks continued to
improve, and the popularization of applications was accelerated in an all-round way. All of these contributed to
steady progression of the industry.
The communication equipment manufacturing industry is an important foundation of the communication
industry. Driven by national policies, the communication equipment manufacturing industry is generally facing
good development opportunities; Additionally, the communication equipment manufacturing industry is a fully
competitive industry, with a great many of players in fierce competition.
From the standpoint of the Company's primary products in specific sub-sectors, the swift
advancement in technologies such as cloud computing, artificial intelligence, the Internet of
Things, 5G, and ultra-high-definition audio/video (4K/8K), coupled with an increased focus on
replacing imports with domestic alternatives, has significantly expanded the developmental
prospects for the Company’s video conferencing products, and also facilitated a rapid transition of
these products towards more intelligent, ultra-high-definition, and IoT-based upgrades. In terms
of smart cabling products, the ongoing construction of new infrastructures like 5G networks and
data centers is generating fresh opportunities and expanding market demands for the Company’s
integrated cabling and data center support products. Concerning smart power distribution products,
the adoption of smart manufacturing practices in downstream industries is driving industrial
upgrades and imposing new requirements for monitoring, control, and cloud computing
capabilities in low-voltage electrical products. Additionally, the digitization of these products is
progressing swiftly and becoming increasingly pervasive, which supports the Company’s
intelligent electrical products in their gradual shift towards customization, digitization, and
intelligentization. In regard to smart lighting products, following the national implementation of
the "carbon emissions peak and carbon neutrality" strategy and the promotion of smart city
construction, the deployment of smart streetlights is increasing by approximately one million
units annually. The Company's IoT-based grid-connected and solar energy streetlight controllers,
along with comprehensive solutions, are seeing expansive growth potential.
II. Major business of the Company during the reporting period
As one of the important providers of products and solutions in the field of information and
communication in China, the Company has adhered to the strategy of "products + solutions +
services" and constantly accelerated product innovation, industrial restructuring, and
transformation and upgrading. The Company and its subsidiaries mainly operate in sectors such
as smart conferencing, smart cabling, smart power distribution, and smart lighting. Their key
products include multimedia communication and application solutions, integrated smart building
Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co., Ltd.
solutions, industrial smart power distribution systems, IoT-based grid-connected and solar energy
streetlight control systems, etc. These products primarily serve large central enterprises,
government bodies, and customers from industries such as finance, electric power, and healthcare.
The subsidiary Southern Telecom mainly offers multimedia communication and application solutions to central
enterprises and large and medium industry customers in the fields of government, finance, and medical care; Its
subsidiary Telege mainly provides customers with mid-to-high-end integrated cabling and building intelligent
system solutions; the subsidiary Nanman Electrical provides intelligent power distribution solutions for various
scenarios such as rail transit, airports, ports and parks; the subsidiary Putian Datang mainly provides customers
with solutions of grid-connected and solar energy streetlight controllers, and IoT-based intelligent streetlight
management and control.
The Company mainly obtains business opportunities by participating in project bidding. It designs,
manufactures or purchases equipment required by customers according to project requirements, and is
responsible for installation, commissioning and system integration, and realizes profits after deducting cost
according to contract prices. The Company's operating performance is mainly affected by the capital
expenditure, information technology investments and bidding results of central enterprises, government
agencies, financial institutions, customers from the rail traffic industry and other industries, as well as
fluctuations in raw material prices and changes in other costs.
III. Analysis of core competitiveness
1. Marketing ability
The Company consistently adopts a market-oriented approach, has established a robust
marketing network, and has extensive experience serving sectors including central enterprises,
government bodies, and customers from industries such as finance, rail transit, electric power,
healthcare, and internet. Moreover, the Company has set up offices in major cities including
Beijing, Xi'an, Shanghai, Chengdu, Wuhan, and Shenzhen, assembling localized marketing
teams, and offering customers comprehensive and professional services through its dedicated
sales, technical, and business teams.
2. Product competitiveness
The Company staunchly adheres to an innovation-driven strategy, systematically intensifying the
R&D of novel products to elevate its core competencies. The Company has more than 20 years of
rich professional and technical service experience in the field of smart conferencing; By virtue of
independent innovation, its self-developed products have been widely recognized by customers
such as central enterprises, government bodies, and customers from industries such as finance,
and healthcare. Additionally, through a strategic partnership with Huawei in the smart
collaboration domain and the establishment of the Southern Telecom Smart Collaboration
Experience Center, the Company continuously capitalizes on the synergistic technical strengths
of its self-developed smart management platforms and Huawei's products, thereby creating
greater values for customers. Its intelligent cabling products are positioned in the high-end market.
It provides premium-quality solutions for integrated cabling and intelligent building systems.
Exhibiting robust competitive advantages in market sales and product technical standards, these
products have emerged as reputable substitutes for international brands. Its intelligent power
distribution products find extensive application in trail transit, airports, terminals, and other
Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co., Ltd.
industries, consistently maintaining a prominent position in the rail transportation sub-sector. Its
market standing is attributed to the high professionalism and strong competitiveness of its
products. In the field of smart lighting, the Company has been deeply engaged in developing
energy-efficient controller systems, primarily offering customers advanced smart streetlight
solutions integrating IoT-based solar energy and grid-connected streetlight controllers. It has
established a complete system that encompasses R&D, manufacturing, and large-scale sales.
During the reporting period, the Company filed for 26 new patents, including 9 invention patents, and
submitted 16 new software copyrights. It received approval for 9 new patents and secured 17 new software
copyrights, participated in drafting 2 national and 2 industry standards, and passed certification for 18 products.
3. Brand influence
The Company, a subsidiary of a state-owned enterprise, operates within the information and communications
sector. Southern Telecom offers a series of video conferencing products such as Ruijing and Ruizhi, and enjoys
a high reputation in China; Putian Telege has earned the prestigious distinction of being recognized as a famous
brand of integrated cabling products in Jiangsu Province, as well as a renowned provincial trademark. Securing
the "Top Ten Integrated Cabling Brands" award for 19 consecutive years and ranking third, Telege underscores
its leadership in substituting imports within the industry; Nanman Electrical is a prominent brand within the rail
transportation industry; Putian Datang holds significant brand influence in the energy-saving control domain.
IV. Analysis of main business
1. Overview
The year 2023 marks the beginning of the comprehensive implement of the guiding principles of the 20th CPC
National Congress. It is an important year to connect the preceding with the following in the implementation of
the 14th Five-Year Plan, and a crucial year for the Company to fully integrate into CETC Glarun. In response to
emerging historical opportunities and challenges, the Company optimized its industrial layout, concentrated on
its core businesses and responsibilities, and integrated research and development, production, and sales
processes. By strengthening centralized control at its headquarters, it has fostered a synergy effect. Building on
its existing industrial strengths, and under the premise of consolidating its current market, the Company
continues to drive the business towards upgrades and transformations in smart conferencing, smart cabling,
smart power distribution, and smart lighting. It is expanding into quality markets, including central enterprises,
finance, energy, airports, ports, and military sectors, enhancing innovation, and research and development
capabilities. These efforts aim to develop core and differentiated competitive advantages, thereby elevating the
Company's overall competitiveness. Moreover, the Company is intensifying internal management, ramping up
efforts to streamline loss-making subsidiaries, recovering accounts receivable and clearing inventory debts,
strengthening cost control, revitalizing inefficient and idle assets, and fostering its stable and sustainable growth.
During the reporting period, the Company realized operating revenue of 818.33 million yuan, and the net profit
attributable to shareholders of the listed company was -16.88 million yuan, a decrease of 30.51 million yuan
compared with the same period of the previous year.
Development of main business during the reporting period:
The company remains committed to reinforcing its traditional businesses, deeply exploring niche areas,
focusing on industries where it already holds advantages, and attaching great importance to key industries and
customers. It is enhancing synergies across the upstream and downstream supply chains of CETC, centering on
the "information communication and electrical products". This focus includes boosting the capacity for
Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co., Ltd.
providing product and services related to network and information systems, and further improving the
Company’s overarching capability to provide solutions integrating “products + technology + services.”
In terms of smart conferencing products, the Company is leveraging its video conferencing and conference
room integration businesses to boost sales of its independently controlled Ruijing software and hardware
products, thereby developing differentiated solutions. The Company has strengthened the construction of
industry qualifications, and has successively obtained a number of certifications such as Grade II Contractor for
Electronic and Intelligentization Projects, Grade II Contractor for Building Decoration and Finishing Projects,
and the Level III Certificate for Compliance with Information Technology Service Standards. The Company is
also enhancing the execution of major ongoing projects such as the Capital Airport Project; it has secured
projects of the Agricultural Development Bank of China and the CNNC Beijing Science Park, offering tailored
services to key customers including PipeChina, Kweichow Moutai, Jining Medical University, and Harbin
Metro. As a distinguished agent for Huawei's video conferencing products, the Company is deepening its
strategic collaboration with Huawei and increasing its investments in the smart collaboration market.
In terms of intelligent cabling products, the Company is working to elevate its brand influence and penetrate
high-end markets like finance and military sectors. It is refining its market mechanisms, motivating its
distributor network, and expanding its market share. It has successfully won bids for key industry projects
including a municipal government machine room transformation, the machine room of Chengdu Huaizhou
Hospital, and the machine room of a public security bureau. It has completed the development of prototype
systems for industrial internet and integrated cabling in industry applications, as well as prototype trial-
manufacturing of military optical fiber connectors, optical modules, and essential components and parts. For the
19th consecutive year, it maintained its third-place ranking among the "Top Ten Integrated Cabling Brands" and
was recognized during the reporting period as a "specialized, refined, characteristic, and innovative" enterprise
in Jiangsu Province.
In terms of smart power distribution products, the Company is deepening its engagement in the rail transit and
broader social markets, consistently enhancing project quality. It has secured projects for Beijing Metro Line 17,
Shanghai Airport Link Line, and Jinan Urban Rail, and completed emergency product deliveries for Beijing
Metro Line 12, Beijing Metro Line 14, Beijing Yushuzhuang Vehicle Section, and Nanjing Metro Line 5,
earning high praise from customers. It has obtained the Weapon Equipment Quality Management System
Certification and the "Leading Brand of China Electrical Industry" honor. During the reporting period, it passed
the re-evaluation as a “Technology-based SME" and "Innovative SME" in Jiangsu Province.
In terms of smart lighting products, the Company is actively developing new products and pushing forward
market transformation. As a high-tech enterprise and a certified software enterprise with registered software
products, the Company continues to ramp up its technological investments, further developing products like
grid-connected complementary energy-saving controllers, a smart city comprehensive management platform,
and smart streetlights, with new products accounting for nearly 20% of sales.
2. Revenue and costs
(1) Composition of operating revenue
Unit: yuan
2023 2022 Year-on-year
Proportion in Proportion in increase or
Amount Amount decrease
operating revenue operating revenue
Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co., Ltd.
Total operating
818,334,374.30 100% 879,566,048.96 100% -6.96%
revenue
Industry
Communication
717,049,035.96 87.62% 788,478,840.69 89.64% -9.06%
industry
Electrical industry 101,285,338.34 12.38% 91,087,208.27 10.36% 11.20%
Product
Revenue from
main business -
364,038,981.16 44.49% 363,986,691.29 41.38% 0.01%
integrated cabling
products
Revenue from
main business -
252,616,129.46 30.87% 304,872,384.83 34.66% -17.14%
video conferencing
products
Revenue from
main business -
92,543,747.61 11.31% 88,207,032.72 10.03% 4.92%
smart electrical
products
Revenue from
main business -
communication
121,072,076.61 14.79% 145,879,508.57 16.59% -17.01%
infrastructure
products and
others
Internal offset -29,294,980.98 -3.58% -40,821,613.26 -4.64% -28.24%
Revenue from
17,358,420.44 2.12% 17,442,044.81 1.98% -0.48%
other business
Region
China 818,334,374.30 100.00% 879,566,048.96 100.00% -6.96%
Sales mode
Direct selling 477,217,979.91 58.32% 464,411,292.37 52.80% 2.76%
Distribution 341,116,394.39 41.68% 415,154,756.59 47.20% -17.83%
(2) The industries, products, regions and sales modes that account for more than 10% of the Company's operating revenue
or operating profit
Applicable □Not applicable
Unit: yuan
Operating Gross profit
Operating costs
revenue margin
increased or
Gross increased or increased or
decreased over
Operating revenue Operating cost profit decreased over decreased over
the same period
margin the same period the same period
of the previous
of the previous of the previous
year
year year
Industry
Communication
717,049,035.96 544,180,224.01 24.11% -9.06% -13.58% 3.97%
industry
Electrical
101,285,338.34 75,504,884.66 25.45% 11.20% 9.52% 1.14%
industry
Product
Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co., Ltd.
Revenue from
main business -
integrated 364,038,981.16 285,962,797.49 21.45% 0.01% 0.37% -0.27%
cabling
products
Revenue from
main business -
video 252,616,129.46 182,394,755.44 27.80% -17.14% -24.18% 6.71%
conferencing
products
Revenue from
main business -
92,543,747.61 71,735,451.78 22.48% 4.92% 6.40% -1.09%
smart electrical
products
Revenue from
main business -
communication
121,072,076.61 98,711,820.95 18.47% -17.01% -26.45% 10.47%
infrastructure
products and
others
Internal offset -29,294,980.98 -28,570,843.39 2.47% -28.24% 29.67% 1.98%
Revenue from
17,358,420.44 9,451,126.40 45.55% -0.48% -22.05% 15.06%
other business
Region
China 818,334,374.30 619,685,108.67 24.27% -6.96% -11.30% 3.70%
Sales mode
Direct selling 477,217,979.91 356,641,883.01 25.27% 2.76% -5.75% 6.75%
Distribution 341,116,394.39 263,043,225.66 22.89% -17.83% -17.85% 0.02%
When the statistical range of the Company's main business data is adjusted during the reporting period, the Company's main
business data according to the range adjusted at the end of the reporting period in the latest year is
□Applicable Not applicable
(3) Whether the Company's physical sales revenue is greater than the labor service revenue
Yes □No
Year-on-year
Industry Item Unit 2023 2022 increase or
decrease
Sales Yuan 717,049,035.96 788,478,840.69 -9.06%
Communication Production Yuan 682,850,852.71 785,475,356.70 -13.07%
industry Inventory Yuan 91,908,637.52 126,106,820.77 -27.12%
Sales Yuan 101,285,338.34 91,087,208.27 11.20%
Production Yuan 91,742,061.29 73,999,365.12 23.98%
Electrical industry
Inventory Yuan 30,790,140.74 40,333,417.79 -23.66%
Explanation of the reasons why the relevant data changed by more than 30% year-on-year
□Applicable Not applicable
Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co., Ltd.
(4) The performance of major sales contracts and major purchase contracts signed by the Company as of the reporting
period
□Applicable Not applicable
(5) Composition of operating costs
Industry
Unit: yuan
2023 2022
Year-on-year
Industry Item Proportion to increase or
Proportion to
Amount operating Amount decrease
operating costs
costs
Cost of main
Communica business - raw
tion material cost 487,513,256.43 78.67% 579,046,304.70 82.89% -15.81%
industry (procurement
cost)
Communica
Cost of main
tion 47,878,388.54 7.73% 38,718,063.87 5.54% 23.66%
business - other
industry
Communica
Cost of other
tion 8,788,579.04 1.42% 11,903,131.78 1.70% -26.17%
business
industry
Cost of main
business - raw
Electrical
material cost 64,837,890.33 10.46% 56,741,067.50 8.12% 14.27%
industry
(procurement
cost)
Electrical Cost of main
10,004,446.97 1.61% 11,978,213.45 1.71% -16.48%
industry business - other
Electrical Cost of other
662,547.36 0.11% 220,849.12 0.03% 200.00%
industry business
Total Operating cost 619,685,108.67 100.00% 698,607,630.42 100.00% -11.30%
Description
-
(6) Whether the consolidation scope changed during the reporting period
Yes □No
See the section "Changes in the scope of consolidation" in the notes to the financial statements in the full text
of the annual report.
(7) Major changes or adjustments in the business, products or services of the Company during the reporting period
□Applicable Not applicable
Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co., Ltd.
(8) Main customers and suppliers
Main sales customers of the Company
Total sales amount of the top five customers (yuan) 95,320,957.91
Proportion of total sales amount of the top five customers to
11.65%
total annual sales amount
Proportion of related party sales of the top five customers' sales
5.09%
to the total annual sales
Information of the Company’s top 5 customers
Proportion to total annual
S/N Customer name Sales (yuan)
sales
China Electronics Technology
1 41,637,485.74 5.09%
Group Corporation
Nanjing Yongrui Technology
2 15,198,245.90 1.86%
Co., Ltd.
China Railway Electrification
3 14,023,662.44 1.71%
Engineering Group Co., Ltd.
China Railway 19th Bureau
4 12,419,784.34 1.52%
Group Corporation Limited
Beijing Shengshi Shunyuan
5 12,041,779.49 1.47%
Technology Co., Ltd.
Total -- 95,320,957.91 11.65%
Other information of major customers
Applicable □Not applicable
Nanjing Yongrui Technology Co., Ltd., China Railway Electrification Engineering Group Co., Ltd., China
Railway 19th Bureau Group Corporation Limited, and Beijing Shengshi Shunyuan Technology Co., Ltd. are top
five new customers.
Major suppliers of the Company
Total purchase amount of the top 5 suppliers (yuan) 179,567,443.38
Proportion of total purchase amount of the top five suppliers to
32.98%
total annual purchase amount
Proportion of related party purchase amount in the top 5
0.00%
suppliers' purchase amount to total annual purchase amount
Information of the Company’s top 5 suppliers
Proportion to total annual
S/N Name of supplier Purchase amount (yuan)
purchase amount
1 Supplier 1 59,245,898.21 10.88%
Jiangsu DongQiang Cables
2 40,088,463.68 7.36%
Co., Ltd.
3 Supplier 3 36,792,980.52 6.76%
4 Supplier 4 27,431,721.97 5.04%
5 Supplier 5 16,008,379.00 2.94%
Total -- 179,567,443.38 32.98%
Other information of major suppliers
Applicable □Not applicable
Jiangsu DongQiang Cables Co., Ltd. is one of the top 5 new suppliers
Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co., Ltd.
3. Expenses
Unit: yuan
Year-on-year increase Description of major
2023 2022
or decrease changes
Sales expenses 76,487,601.27 75,331,981.00 1.53%
Management expenses 61,842,896.59 63,190,264.31 -2.13%
Financial expenses 9,397,594.51 10,081,432.77 -6.78%
Research and
38,022,112.34 42,690,479.34 -10.94%
development expenses
4. Investment in R&D
Applicable □Not applicable
Expected impact on the
Name of main R&D
Project purpose Project progress Goals to be achieved future development of
project
the Company
Meet customer needs,
and adhere to the
essential characteristics Expand the Company's
Develop new products
Photoelectric hybrid Project acceptance has of integrated cabling product types and
according to customer
cabling systems been completed systems: compatibility, enhance product
and market needs
openness, flexibility, diversity.
reliability, and
advancement.
Enhance product
New-generation
Continually iterate Enrich product performance, improve
intelligent cabling
offerings based on Project acceptance has portfolios and improve product
system and integrated
demands of customers been completed technical parameters of competitiveness and
cabling management
and the market products promote business
platform 2023
growth.
Optimize product
Enhance product
Enhance product technology, improve
competitiveness,
Economical cabling competitiveness and Project acceptance has production efficiency,
expand market share,
systems independently develop been completed and greatly reduce
and promote business
new products production and
growth.
manufacturing costs.
Industrial Internet and Expand the Company's
Continually iterate Meet customer needs
industrial application product types, enhance
offerings based on Prototype R&D has and enrich the
integrated cabling the Company's product
demands of customers been completed Company's product
systems (YW circular diversity, and promote
and the market categories.
network connectors) business growth.
Prototype trial-
Expand the Company's
manufacturing of Continually iterate Meet customer needs
Prototype trial- product types, enhance
military optical fiber offerings based on and enrich the
manufacturing has the Company's product
connectors, optical demands of customers Company's product
been completed diversity, and promote
modules, and essential and the market categories.
business growth.
components and parts
Enhance the Provide customers with Improve the market
advantages of video overall management competitiveness of
Ruijing conference Project acceptance has
conferencing solutions systems, increase video conferencing
management systems been completed
and independently customer stickiness, projects, and help the
develop new products and achieve continuous Company develop new
Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co., Ltd.
cooperation. markets and customers.
Expand the Company's
Meet customer needs
Develop new products product types, enter
Military electrical Project acceptance has and enrich the
according to customer new markets, and
connectors been completed Company's product
and market needs promote business
categories.
growth.
Enhance product
Smart power
Meet customer needs performance, improve
distribution systems Develop new products
Project acceptance has and enrich the product
(components + according to customer
been completed Company's product competitiveness and
software + DC power and market needs
categories. promote business
distribution)
growth.
Improve the reliability
Smart application of Optimize network
and stability of optical Continually iterate
integration of smart resource allocation,
fiber networks, and Project acceptance has offerings based on
ODN system and improve resource
ensure the safety and been completed customer demands and
optical cable utilization, and reduce
smoothness of data market development
monitoring system costs for customers.
transmission
Enhance product
Meet customer needs performance, improve
Develop new products
Centralized IoT-based Project acceptance has and enrich the product
according to customer
smart circuit breakers been completed Company's product competitiveness and
and market needs
categories. promote business
growth.
Enhance product
Meet customer needs performance, improve
Smart gateways for Develop new products
Project acceptance has and enrich the product
smart lighting according to customer
been completed Company's product competitiveness and
management and market needs
categories. promote business
growth.
R&D personnel of the Company
2023 2022 Proportion of change
Number of R&D personnel
292 274 6.57%
(unit: person)
Proportion of R&D personnel 37.24% 30.27% 6.97%
Educational levels of R&D personnel
Bachelor’s degree 178 173 2.89%
Master’s degree 5 5 0.00%
Age of R&D personnel
Under 30 66 67 -1.49%
30 ~ 40 141 128 10.16%
40 ~ 50 65 61 6.60%
Over 50 20 18 11.11%
R&D investment of the Company
2023 2022 Proportion of change
R&D investment amount
38,022,112.34 42,690,479.34 -10.94%
(yuan)
Proportion of R&D
investment to operating 4.65% 4.85% -0.20%
revenue
Amount of capitalized R&D 0.00 0.00 0.00%
Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co., Ltd.
investment (yuan)
Proportion of capitalized
R&D investment to R&D 0.00% 0.00% 0.00%
investment
Causes and impacts of major changes in the composition of R&D personnel in the Company
□Applicable Not applicable
Reasons for significant changes in the proportion of total R&D investment to operating revenue compared with the previous year
□Applicable Not applicable
Reasons for the significant change of capitalization rate of R&D investment and an explanation of its reasonability
□Applicable Not applicable
5. Cash flow
Unit: yuan
Year-on-year increase or
Item 2023 2022
decrease
Subtotal of cash inflow from
875,872,365.97 908,235,270.88 -3.56%
operating activities
Subtotal of cash outflow from
881,890,016.00 938,961,781.27 -6.08%
operating activities
Net cash flow from operating
-6,017,650.03 -30,726,510.39 80.42%
activities
Subtotal of cash inflow from
238,830.00 21,066,608.48 -98.87%
investing activities
Subtotal of cash outflow from
4,226,647.07 2,629,351.27 60.75%
investing activities
Net cash flow from investing
-3,987,817.07 18,437,257.21 -121.63%
activities
Subtotal of cash inflow from
170,538,933.34 198,600,000.00 -14.13%
financing activities
Subtotal of cash outflow from
160,740,527.52 202,378,296.79 -20.57%
financing activities
Net cash flow from financing
9,798,405.82 -3,778,296.79 359.33%
activities
Net increase in cash and cash
-207,061.28 -16,074,329.47 98.71%
equivalents
Description of the main influencing factors of major year-on-year changes in relevant data
Applicable □Not applicable
The net cash flow from operating activities increased year-on-year, mainly because the Company continues to
increase the pressure drop of the two gold, strive to do the letter to the letter, respond to the lawsuit, the effect is
obvious.
The year-on-year decrease in cash inflow from investment activities was mainly due to the recovery of
subsidiaries’ trading financial asset when they matured in the previous year.
The year-on-year increase in cash outflow from investment activities was mainly due to the increase in the
Company's fixed asset investment during the reporting period.
Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co., Ltd.
The year-on-year decrease in net cash flow from investment activities was mainly due to the recovery of
subsidiaries’ trading financial assets when they matured in the previous year.
The year-on-year decrease in net cash flow from financing activities was mainly due to the decrease in
dividends paid by subsidiaries to minority shareholders compared with the same period of the previous year.
The year-on-year increase in net increase in cash and cash equivalents was mainly due to the combined effect of
cash flows from operating activities, investment activities and financing activities.
Explain the reasons for the significant difference between the net cash flow generated from the Company's operating activities
during the reporting period and the net profit of the current year
□Applicable Not applicable
V. Analysis of non-main business
Applicable □Not applicable
Unit: yuan
Proportion to total
Amount Reasons Is it sustainable
profits
Mainly the reversal of
Return on investment 1,277,927.08 150.10% No
debt restructuring
Mainly the reversal of
Non-operating revenue 2,158,806.41 253.56% long-standing unpaid No
accounts payable
Mainly the unrecoverable
assets due to subsidiary
Non-operating
1,109,527.83 130.32% dissolution, as well as fines No
expenses
forfeits and penalty
expenditure
Provision of expected credit
losses for accounts receivable,
other receivables and bills
Credit impairment loss -9,012,120.28 -1,058.00% No
receivable according to the
new financial instrument
standards
Asset impairment loss -4,935,911.69 -579.74% Loss of inventory depreciation No
VI. Analysis of assets and liabilities
1. Significant changes in asset composition
Unit: yuan
By the end of 2023 Early 2023 Increase or
Description of
Proportion to Proportion to decrease in
Amount Amount major changes
total assets total assets proportion
Monetary funds 178,290,844.21 21.58% 173,863,825.35 19.50% 2.08%
Accounts
301,618,359.27 36.50% 304,616,212.04 34.17% 2.33%
receivable
Contract assets 0.00% 0.00% 0.00%
Inventories 122,698,778.26 14.85% 166,440,238.56 18.67% -3.82%
Investment real 19,127,078.75 2.31% 20,351,240.03 2.28% 0.03%
Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co., Ltd.
estate
Long-term
equity 10,412,689.14 1.26% 10,422,321.80 1.17% 0.09%
investment
Fixed assets 93,754,100.19 11.35% 97,917,714.15 10.98% 0.37%
Projects under
5,906.53 0.00% 0.00% 0.00%
construction
Right-of-use
0.00% 0.00% 0.00%
asset
Short-term
69,863,323.93 8.46% 112,836,727.77 12.66% -4.20%
loans
Contract
16,720,781.30 2.02% 15,048,811.36 1.69% 0.33%
liability
Long-term
176,011,976.11 21.30% 105,800,000.00 11.87% 9.43%
loans
Overseas assets account for a high proportion
□Applicable Not applicable
2. Assets and liabilities measured at fair value
Applicable □Not applicable
Unit: yuan
Profits
and
losses
Changes in
from Impairment Purchase Sales
cumulative
Opening changes accrued in amount in amount in Other Closing
Item fair value
amount in fair the current the current the current changes amount
included in
value in period period period
equity
the
current
period
Financial assets
4. Other
equity
741,953
instrument 741,953.00
.00
investment
s
Subtotal of
741,953
financial 741,953.00
.00
assets
Financing
with 32,347,
30,668,999.36
accounts 277.62
receivable
Total of the
33,089,
above 31,410,952.36
230.62
items
Financial
0.00 0.00
liabilities
Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co., Ltd.
Other changes
Whether there were any significant changes in the measurement attributes of the Company's main assets during the reporting
period
□Yes No
3. Restricted asset rights as of the end of the reporting period
Assets with restricted ownership or use rights
(1) Details
Item Closing book value Reasons for restriction
Freezes due to security deposits and
Monetary funds 14,113,164.10
litigation
Fixed assets 23,546,470.68 Real estate and Land mortgage loans
Intangible assets 3,344,930.14 Real estate and Land mortgage loans
Total 41,004,564.92
(2) Other notes
In addition to the above-mentioned assets with restricted ownership or use rights, the Company
pledged its equity interests in its subsidiaries, namely 96.99% equity interest in Nanjing Southern Telecom Co.,
Ltd. (with a corresponding capital contribution of 33.17 million yuan), 100% equity interest in Nanjing Nanman
Electrical Co., Ltd. (with a corresponding capital contribution of 41.14 million yuan), to China Potevio
Information Industry Co., Ltd. for a loan granted by the bank entrusted by the company. The Company
registered the pledges of its equity interests with the Qinhuai and Jiangning Administrations for Market
Regulation of Nanjing respectively; The parent company, CETC Glarun Group Co., Ltd., provided a guarantee
for the Company's loan from CETC Finance Co., Ltd., and the Company pledged the 40% equity interest in its
subsidiary Nanjing Putian Telege Intelligent Building Ltd. (with a corresponding capital contribution of 8
million yuan) to the parent company. The Company registered the pledge of its equity interest with the
Jiangning Administrations for Market Regulation of Nanjing. The transfer of the above-mentioned equity
interests in subsidiaries is restricted until the pledges are released.
VII. Analysis of investment status
1. Overview
Applicable □Not applicable
Investment amount in the reporting Investment amount in the same period of
Amplitude of variation
period (yuan) the previous year (yuan)
3,508,094.97 3,726,579.21 -5.86%
Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co., Ltd.
2. Significant equity investments acquired during the reporting period
□Applicable Not applicable
3. Major ongoing non-equity investments during the reporting period
□Applicable Not applicable
4. Investment in financial assets
(1) Securities investment
□Applicable Not applicable
There was no securities investment during the reporting period.
(2) Derivatives investment
□Applicable Not applicable
There was no derivative investment during the reporting period.
5. Use of raised funds
□Applicable Not applicable
There was no use of the raised funds during the reporting period.
VIII. Sale of major assets and equity
1. Sale of major assets
□Applicable Not applicable
The Company did not sell any major assets during the reporting period.
2. Sale of major equity
□Applicable Not applicable
IX. Analysis of the major companies controlled by the Company and companies in which
the Company holds an equity stake
Applicable □Not applicable
Major subsidiaries, and companies in which the Company holds an equity stake and that contribute more than 10% to the
Company's net profit
Unit: yuan
Company Type of Main Registered Operating Operating
Total assets Net assets Net profit
name company business capital revenue profit
Nanjing Developme 20 million 280,655,12 112,893,37 368,898,07 30,644,056. 27,498,536.
Subsidiary
Putian nt, yuan 4.41 8.16 6.14 69 16
Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co., Ltd.
Telege production
Intelligent and sales of
Building integrated
Ltd. cabling and
intelligent
building
products
Multimedia
Nanjing
communica 34.2
Southern 241,492,24 99,166,241. 253,011,36 16,088,558. 15,462,906.
Subsidiary tion and million
Telecom 0.02 59 7.56 34 56
application yuan
Co., Ltd.
solutions
Manufactur
ing and
Nanjing sales of
41.14
Nanman industrial 149,539,56 54,694,670. 101,285,33 2,144,270.5 2,111,624.3
Subsidiary million
Electrical intelligent 9.27 21 8.34 5 0
yuan
Co., Ltd. power
distribution
products
Research
and
developme
nt,
production
and sales of
Nanjing grid-
Putian connected
Datang and solar
10 million 46,432,917. 25,945,721. 27,436,881. 1,545,653.9 1,810,236.2
Informatio Subsidiary energy
yuan 63 55 67 1 5
n streetlight
Electronics controllers,
Co., Ltd. and
production
and
processing
of
electronic
products
Manufactur
ing and
sales of
outdoor
cabling
products,
Nanjing
cable
Putian
distribution
Changle - - -
equipment, 10 million 7,671,339.5 2,820,111.9
Communic Subsidiary 4,017,518.3 3,398,526.4 3,075,614.4
outdoor yuan 4 6
ation 7 9 4
and
Equipment
machine
Co., Ltd.
room
network
chassis
(cabinet)
equipment,
communica
Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co., Ltd.
tion
electronic
products
Acquisition and disposal of subsidiaries during the reporting period
Applicable □Not applicable
Ways of acquiring and disposing Impact on overall production, operation
Company name
subsidiaries during the reporting period and performance
Nanjing Putian Network Co., Ltd. Liquidation and closure No significant impact
Chongqing Puhua Information
Liquidation and closure No significant impact
Technology Co., Ltd.
Seventh Branch of Nanjing
Liquidation and closure No significant impact
Communication Equipment Factory
Information of major companies controlled by the Company and companies in which the Company holds an equity stake
X. Structured entities controlled by the Company
□Applicable Not applicable
XI. Prospects for the future development of the Company
In 2024, the Company will steadfastly adhere to the principles embodied in Xi Jinping’s Thought on Socialism
with Chinese Characteristics for a New Era. It will wholeheartedly embrace the tenets of the 20th CPC National
Congress, ensuring unwavering alignment with the strategic decisions and deployments delineated by CETC's
leading Party group and the Party Committee of CETC Glarun. Prioritizing stability and seeking progress while
maintaining stability, the Company will resolve legacy challenges while fostering innovation and breakthroughs
amid transformative endeavors. It will concentrate on core responsibilities and businesses, leverage the
strengths of leading sectors, expand market development within the CETC framework, identify new economic
growth areas, strive to comprehensively enhance its operational management and ability to prevent and mitigate
significant risks, and try to chart a trajectory toward the robust, sustained, and resilient growth.
(I) Key work of the Company in the year:
1. Consolidate foundations and enhance leading sectors. By concentrating on key sectors and customers, the
Company is vigorously expanding business beyond the CETC framework as a new driver of economic growth.
The Company gives full play of its proprietary strengths in smart cabling, audio-video integration, smart power
distribution, smart ODN systems and energy-saving control to strengthen and enlarge its existing industry
markets while actively seeking new customers in the Group and military sectors.
2. Optimize the business structure and strengthen implementation management. The Company strategically
adjusts its industrial structure, phases out unprofitable operations, and supports the expansion of its leading
sectors. It is intensifying its focus on industry concentration and R&D investments, nurturing new economic
growth points, gradually enhancing its high value-added and soft power capabilities, and significantly bolstering
its core competitiveness. The Company is optimizing resource allocation, aggressively pursuing cost reductions
and efficiency improvements, enhancing process control, and strengthening performance evaluations to ensure
it meets its annual operational objectives.
3. Reinforce foundation and revitalize stock assets. The Company lays a strong emphasis on recovering
accounts receivable and clearing inventory debts, and optimizing asset structures; liquidating inefficient and
Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co., Ltd.
ineffective assets; revitalizing stock assets; enhancing talent acquisition and gradually aligning the necessary
resources to fortify its developmental foundation and continually augment its core competitiveness.
4. Remain committed to technological innovation and continuously enhance product competitiveness. The
Company's management team and the Strategy and Investment Committee play a pivotal role in guiding
planning efforts, ensuring well-coordinated operational strategies. The Company is meticulous in planning and
deliberating on product positioning and R&D, focusing on its competitive technologies and sectors, and key
customers. It is deepening its core business in information and communications, achieving technological
innovations in key applications, and continually advancing the core competitiveness of its products.
(II) Risks that the Company may face during its development:
1. Risks of technology research and development
Given the rapid pace of technological advancement and product evolution in the communications industry,
failing to upgrade or transform its existing products and technology platforms in line with market demands, or if
its R&D outputs do not align with these demands, could adversely affect its operations.
Countermeasures: The Company will actively monitor industry trends in technology development and adopt a
market-oriented approach to technology development and introduction. It places great importance on the
organization, planning, and management of product development, expands new product projects, and strives to
maintain its technological leadership in the industry.
2. Risks of market competition
The industry where the Company operates is intensely competitive, with numerous companies competing,
particularly as national economic growth has slowed, further intensifying competition. Despite having
established a competitive advantage in areas such as brand recognition, technology, quality, and marketing
through its long-term business development efforts, failure to adapt to future market changes may cause the
Company to lose its current advantage in the highly competitive market.
Countermeasures: The Company will continue to leverage its existing advantages to consolidate traditional
markets and actively develop premium customers such as central enterprises, government bodies, and customers
from the finance, energy, airports, and military industries. It aims to strengthen and expand its social industry
market, accelerates industrial transformation and upgrading, and cultivates business in strategic emerging
sectors. The Company will also continuously strengthen its cost control, and enhance its production and R&D
capabilities to promote the rapid development of new products. Furthermore, the Company will keep a close eye
on market trends, grasp market information, adjust sales policies in a timely manner, and maintain its
competitive edge in the market.
3. Risks associated with the supply and price fluctuations of raw materials
The main raw materials used in the Company's daily production include iron, copper, steel plates, etc. The
stability of the supply and price trends of these materials will significantly influence its future production
stability and profitability. Although the Company has smooth and sufficient raw material supply channels,
changes in the supply-demand structure for these materials could still potentially lead to supply shortages or
fluctuations in price and quality, which may negatively impact its product quality, cost efficiency, and
profitability.
Countermeasures: The Company intends to transfer or mitigate the impact of rising raw material costs through
innovations in technological processes, optimization of product structures, and deepening collaborations with its
customers.
4. Risks of cash flow shortage
Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co., Ltd.
The Company's products primarily cater to customers such as central enterprises, government bodies, and
customers from rail transit and other industries. Due to lengthy approval processes and extended project
completion cycles, the Company’s sales repayment cycle is elongated, exerting considerable pressure on its
cash flow.
Countermeasures: The Company adheres to budget management for funds, ensuring a dynamic balance between
cash payments and collections. The Company classifies and collects long-term accounts receivables, while
increasing assessment efforts, implementing reward and punishment measures, urging timely recovery of
payments, strengthening inventory management, and enhancing inventory liquidity. If necessary, the Company
may obtain some working capital financing from financial institutions.
XII. Reception of research, communication, interviews and other activities during the
reporting period
□Applicable Not applicable
During the reporting period, there were no activities such as reception of research, communication and interviews.
XIII. Implementation of the "Dual Enhancement of Quality and Returns" action plan
Has the Company disclosed the "Dual Enhancement of Quality and Returns" action plan.
□Yes No
Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co., Ltd.
Section IV Corporate Governance
I. Overview of corporate governance
In strict accordance with the requirements of the Company Law, Securities Law, Code of Corporate
Governance for Listed Companies, Listing Rules of Shenzhen Stock Exchange and other relevant laws and
regulations, the Company has built a "three organizations and one team" governance system composed of the
Shareholders' General Meeting, the Board of Directors, the Board of Supervisors and the management team,
forming a governance structure with clearly-defined rights and responsibilities, separate functions and
coordinated operation. The Company has improved the internal control system, strengthened internal and
external supervision, and enhanced standardized operation. During the reporting period, the Company adhered
to the combination of Party organization construction and corporate governance, operated according to law,
earnestly safeguarded the legitimate rights and interests of minority shareholders, and promoted its sustained
and healthy development.
1. About shareholders and shareholders' meetings
The Company has developed the Articles of Association in strict accordance with the Company Law,
Guidelines for Articles of Association of Listed Companies and other laws and regulations to ensure that all
shareholders enjoy equal rights and assume corresponding obligations according to their shares. The convening,
holding and voting of shareholders' meetings are conducted in accordance with the laws and regulations, and
internet voting mode is allowed for all shareholders to ensure that all shareholders have the right to know and
make decisions on important matters. The decision-making procedures for related party transactions strictly
comply with the laws and regulations and the Articles of Association of the Company, and there are no cases of
damage to the interests of the Company and unrelated shareholders.
2. About directors and the Board of Directors
The Company elects directors in strict accordance with the selection procedures stipulated in laws and
regulations and the Articles of Association. There are 8 members of the Board of Directors, including 3
independent directors. The number and composition of the Board of Directors comply with laws and regulations.
The Board of Directors, independent directors and professional committees of the Board of Directors shall
exercise their functions and powers in accordance with laws and regulations and the Articles of Association of
the Company, and safeguard the legitimate rights and interests of the Company and all shareholders. All
directors abide by laws and regulations and the relevant provisions of the Articles of Association, perform their
duties diligently and cautiously, attend board meetings seriously, and give their opinions on matters discussed to
ensure the efficient operation and scientific decision-making of the Board of Directors. The convening and
holding of board meetings complies with laws and regulations.
3. Supervisors and the Board of Supervisors
The Company elects supervisors in strict accordance with the selection procedures stipulated in laws and
regulations and the Articles of Association. There are 3 members of the Board of Supervisors, including 1
employee supervisor. The number and composition of the Board of Supervisors comply with laws and
regulations. The Board of Supervisors operates independently, conscientiously performs its duties, inspects the
Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co., Ltd.
Company's finance status according to laws, supervises the legal compliance of directors and senior executives
in performing their duties, exercises the functions and powers stipulated in the Articles of Association, and
safeguards the legitimate rights and interests of the Company and shareholders.
4. Senior executives and incentives
The Company employs senior executives in strict accordance with legal procedures and the Articles of
Association of the Company. There are no cases where controlling shareholders, actual controllers and their
related parties interfere with the normal selection procedures of senior executives and directly appoint or
dismiss senior executives without the approval of the Shareholders' General Meeting and the Board of Directors.
The Company has established a mechanism linking remuneration with Company performance and individual
performance, and takes the performance evaluation of senior executives as an important basis for remuneration
and other incentives of senior executives.
5. Controlling shareholders and their related parties
The controlling shareholder of the Company exercises shareholders' rights and fulfills shareholders' obligations
according to laws, and there are no cases where the controlling shareholder and actual controller leverage their
control rights to damage the legitimate rights and interests of the Company and other shareholders. The
nomination or recommendation of candidates for directors and supervisors by controlling shareholder shall
comply with the requirements and procedures stipulated by laws and regulations and the Articles of Association
of the Company. Major decisions of the Company are made by the Shareholders' General Meeting and the
Board of Directors according to laws. The Company is independent of the controlling shareholder and actual
controller in terms of personnel, assets, finance, organizations and businesses. They conduct accounting
independently, and bear liability and risks independently. For related party transactions, decision-making
procedures and information disclosure obligations are strictly performed in accordance with relevant regulations.
The Company does not provide guarantee for the controlling shareholder and its affiliated enterprises. The
controlling shareholder does not occupy the Company's funds for non-operating purposes.
6. Stakeholders, environmental protection and social responsibilities
The Company respects the legitimate rights of banks and other creditors, employees, customers, suppliers,
communities and other stakeholders. While maintaining its development, striving to improve business
performance and protecting the interests of shareholders, the Company actively fulfills its social responsibilities,
conducts effective exchanges and cooperation with stakeholders to jointly promote the sustained and steady
development of the Company and the industry.
7. Information disclosure and transparency
In strict accordance with laws and regulations, self-discipline rules and the Articles of Association, the
Company conscientiously fulfills its information disclosure obligations, continuously strengthens the
standardization of information disclosure, conducts investor exchanges in accordance with regulations, fully
protects shareholders' right to be informed, ensures the transparency of information disclosure, and ensures that
all shareholders of the Company can obtain information with equal opportunities.
Is there any significant difference between the actual situation of corporate governance and the laws, administrative regulations
and the regulations on the governance of listed companies issued by China Securities Regulatory Commission
□Yes No
There is no significant difference between the actual situation of corporate governance and the laws, administrative regulations and
Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co., Ltd.
the regulations on the governance of listed companies issued by China Securities Regulatory Commission.
2. The independence of the Company relative to the controlling shareholder and actual
controller in terms of assets, personnel, finance, organizations and business
The Company is independent of and completely separated from the controlling shareholder, actual controller
and other related parties in terms of assets, personnel, finance, organizations and business.
1. Assets
The assets owned by the Company are independent and complete, with clear established ownership, and are not
occupied or controlled by any directors, supervisors, senior executives, controlling shareholder, actual controller
and their related parties.
2. Personnel
The Company has an independent labor and personnel system and an independent workforce; Senior executives
are appointed in accordance with regulations, and do not hold other administrative positions except directors
and supervisors in the controlling shareholder or enterprises controlled by it.
3. Finance
The Company has an independent financial department, has established an independent financial accounting
system and developed financial accounting rules, and developed financial management rules for its branches
and subsidiaries. It can make financial decisions independently, without the interference of the controlling
shareholder in the use of the Company’s funds.
4. Organizations
The Company has established an independent and sound corporate governance structure and internal operation
management organizations. The Board of Directors, the Board of Supervisors and other internal organizations
operate independently, and there is no mixed operation with the controlling shareholder.
5. Business
The Company has complete business systems including procurement, production, sales and R&D systems. It
can make independent decisions and operate independently, and does not need to rely on shareholders and other
related parties for production and operation.
III. Horizontal competition
□Applicable Not applicable
4. Annual general meeting of shareholders and extraordinary general meetings of
shareholders held during the reporting period
1. General Meeting of Shareholders during the Reporting Period
Investor
Session Type Date of meeting Date of disclosure Resolution
participation ratio
Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co., Ltd.
The following
proposals were
reviewed and
approved at the
meeting:
1. Proposal on by-
election of Mr.
Jiang Yi as a
director of the 8th
The first
Board of Directors
extraordinary Extraordinary
of the Company;
general meeting of general meeting of 55.40% March 6, 2023 March 7, 2023
2. Proposal on
shareholders in shareholders
amending the
2023
Articles of
Association of the
Company;
3. Proposal on
amending the
Company’s Rules
of Procedure of the
Board of
Directors;
The following
proposals were
reviewed and
approved at the
meeting:
1. Work Report of
the Company’s
Board of Directors
for 2022;
2. Work Report of
the Company’s
Board of
Supervisors for
2022;
3. The Company's
annual final
2022 annual Annual general financial accounts
general meeting of meeting of 55.24% May 26, 2023 May 27, 2023 report for 2022;
shareholders shareholders 4. The Company's
profit distribution
plan for 2022;
5. Annual report of
the Company for
2022;
6. Proposal on
expected routine
related party
transactions in
2023
7. Proposal on
engaging an
accounting firm;
8. Proposal on
applying for credit
line from financial
Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co., Ltd.
company
2. The preferred shareholders whose voting rights have been restored requested to convene an
extraordinary general meeting of shareholders
□Applicable Not applicable
V. Information on directors, supervisors and senior executives
1. Basic information
Numb
er of Numb Numb Numb
shares er of er of er of Reaso
Other
held at shares shares shares ns for
increas
the increas reduce held at the
Servic Term Term es and
beginn ed in d in the end increas
Name Sex Age Post e starts expires reducti
ing of the the of the e or
status on on ons
the current current current decrea
(shares
current period period period se of
)
period (shares (Share (shares shares
(shares ) s) )
)
Direct
Li Octobe
or and In
Langpi Male 59 r 18, 0 0 0 0 0
Chair service
ng 2022
man
Shen Octobe
Direct In
Xiaobi Male 45 r 18, 0 0 0 0 0
or service
ng 2022
March
Jiang Direct In
Male 43 6, 0 0 0 0 0
Yi or service
2023
Shi Octobe
Direct In
Jiandon Male 50 r 18, 0 0 0 0 0
or service
g 2022
Octobe
Wang Direct In
Male 45 r 18, 0 0 0 0 0
Xingyu or service
2022
Indepe
Song Octobe
ndent In
Tieche Male 56 r 18, 0 0 0 0 0
directo service
ng 2022
r
Indepe
Octobe
Gao Femal ndent In
55 r 18, 0 0 0 0 0
Jing e directo service
2022
r
Indepe
Octobe
Huang ndent In
Male 43 r 18, 0 0 0 0 0
Linkui directo service
2022
r
Superv Octobe
Mei In
Male 41 isor, r 18, 0 0 0 0 0
Lin service
Chair 2022
Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co., Ltd.
man of
the
Board
of
Superv
isors
Octobe
Superv In
He Hui Male 38 r 18, 0 0 0 0 0
isor service
2022
Qiu August
Femal Superv In
Huizhe 50 23, 0 0 0 0 0
e isor service
n 2017
Genera
Februa
Jiang l In
Male 43 ry 16, 0 0 0 0 0
Yi Manag service
2023
er
Execut
ive
Deput
Jia Octobe
Femal y In
Haowe 43 r 18, 0 0 0 0 0
e Genera service
n 2022
l
Manag
er
Deput
y
Genera
Liao l Octobe
In
Rongch Male 49 Manag r 18, 0 0 0 0 0
service
ao er, 2022
Chief
Accou
ntant
Deput
y
Octobe
Femal Genera In
Li Jing 48 r 18, 0 0 0 0 0
e l service
2022
Manag
er
Secret
ary of
the August
Femal In
Li Jing 48 Board 23, 0 0 0 0 0
e service
of 2017
Direct
ors
Genera
Octobe
Fu l In
Male 33 r 18, 0 0 0 0 0
Guokai Couns service
2022
el
Februa Februa
Sun Direct Not in
Male 51 ry 14, ry 13, 0 0 0 0 0
Xigang or service
2022 2023
Vice Octobe Februa
Sun Not in
Male 51 Chair r 18, ry 13, 0 0 0 0 0
Xigang service
man 2022 2023
Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co., Ltd.
Total -- -- -- -- -- -- 0 0 0 0 0 --
Was there resignation of any directors and supervisors or dismissal of any senior executives during the reporting period?
Yes □No
During the reporting period, Vice Chairman Sun Xigang resigned.
Changes of directors, supervisors and senior executives of the Company
Applicable □Not applicable
Name Position Type Date Reason
Sun Xigang Vice Chairman Not in service February 13, 2023 Resignation
2. Service situation
Professional background, main work experience and main responsibilities of current directors, supervisors and senior executives of
the Company
Directors:
Li Langping, male, born in 1964, holds a bachelor’s degree in engineering and is a senior engineer at research
fellow level. He started his career in 1985 and worked in various positions at the 43rd Research Institute of
CETC, including technician, assistant engineer, and engineer, Assistant Deputy Director and Deputy Director at
the 5th Office, Vice President, President, and Deputy Secretary of the Party Committee of the 43rd Research
Institute of CETC, as also served as director, General Manager, and Deputy Secretary of the Party Committee at
CETC Microelectronics Technology Co., Ltd. He is currently serving as a director, General Manager, and
Deputy Secretary of the Party Committee of CETC Glarun Group Co., Ltd., Chairman and Secretary of the
Party Committee of Glarun Technology Co., Ltd., and Chairman and Secretary of the Party Committee of
Nanjing Putian Telecommunications Co., Ltd.
Shen Xiaobing, male, born in 1978, holds a bachelor’s degree and is an engineer. He started his career in 1997
and worked in various positions, including technician and assistant engineer at 121st Office of the 12th
Department of the 14th Research Institute of CETC, General Manager of Nanjing Lopu Technology Co., Ltd.
and General Manager of Nanjing Lopu Co., Ltd. He is currently serving as Deputy General Manager of CETC
Glarun Group Co., Ltd., Chairman of Nanjing Lopu Technology Co., Ltd., Chairman of Nanjing Lopu
Industrial Co., Ltd., Chairman of Nanjing Lopu Co., Ltd. and director of Nanjing Putian Telecommunications
Co., Ltd.
Jiang Yi, male, born in 1980, holds a master’s degree in engineering and is a senior engineer. He started his
career in 2002, and served successively as a probationer in Department VI, assistant engineer and engineer in
Office 602 of Department VI at the 14th Research Institute of CETC, and Director of the General Office of the
Technical Foundation Department at the 14th Research Institute of CETC. He is currently serving as a director,
General Manager and Deputy Secretary of the Party Committee at Nanjing Putian Telecommunications Co., Ltd.
Shi Jiandong, male, born in 1973, holds a master’s degree in engineering and is a senior engineer at research
fellow level. He started his career in 1996 and worked in various positions in the 14th Research Institute of
CETC, including assistant engineer and engineer at 302nd Office of the 3rd Department, senior engineer at the
402nd Office of the 4th Department, Deputy Director of Standardization Office of the Technical Foundation
Department, Director of the Production Office of the Science and Technology Department, Director of the
Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co., Ltd.
Scientific Research Office of the Science and Technology Department, Secretary of United Party Branch of the
logistics company under the Materials and Equipment Department, Vice Director of the Materials and
Equipment Department (concurrently), and Director of General Office (concurrently). He is currently serving as
Secretary of the General Party Branch of Structural Technology Research Department in the 14th Research
Institute of CETC, and a director of Nanjing Putian Telecommunications Co., Ltd.
Wang Xingyu, male, born in 1978, holds a master’s degree in engineering and is a senior engineer. He started
his career in 2000, and served successively as assistant engineer of the Materials and Equipment Department,
and Vice Director of the Materials and Equipment Department in the 14th Research Institute of CETC. He is
currently serving as Deputy Secretary of the United Party Branch in the logistics company under the Materials
and Equipment Department of the 14th Research Institute of CETC and Vice Director of the Materials and
Equipment Department of the 14th Research Institute of CETC, and a director of Nanjing Putian
Telecommunications Co., Ltd.
Song Tiecheng, male, born in 1967, holds a doctor’s degree in engineering. He started his career in 1992, served
successively as teaching assistant, lecturer and associate professor at Southeast University, and is currently a
professor at Southeast University and an independent director of Nanjing Putian Telecommunications Co., Ltd.
Gao Jing, female, born in 1968, holds a bachelor’s degree, and is a senior accountant and a certified public
accountant. She started her career in 1989 and worked in various positions, including accountant and deputy
director at AVIC Jincheng Group Co., Ltd., deputy director of AVIC Jincheng Nanjing Engineering Institute of
Aircraft System, chief project accountant of AVIC Electromechanical Systems Co., Ltd., Chief Risk Control
Officer of Shenzhen Kuang-Chi Cutting-edge Equipment Technology Co., Ltd., CFO of Kuang-Chi
Technologies Co., Ltd., Director of the Risk Control Department and Secretary of the Board of Directors of
Shenzhen Hymson Laser Intelligent Equipment Co., Ltd. She is currently serving as Financial Director of
Shenzhen Hymson Laser Intelligent Equipment Co., Ltd., a director of Changzhou Hymson Jinyu New Energy
Technology Co., Ltd., and an independent director of Nanjing Putian Telecommunications Co., Ltd.
Huang Linkui, male, born in 1980, holds a bachelor’s degree. He started his career in 2003 and used to be a
partner of Jiangsu Tonganning Law Firm, and is currently a partner of Grandall (Nanjing) Law Firm and an
independent director of Nanjing Putian Telecommunications Co., Ltd.
Supervisors:
Mei Lin, male, born in 1982, holds a master’s degree in law, and is a first-class legal counsel and a senior
engineer. He started his career in 2007, served successively as assistant engineer, engineer, senior engineer and
Director of Legal Affairs Office of the 14th Research Institute of CETC. He is currently serving as Deputy
General Counsel of CETC Glarun Group Co., Ltd., Director of Legal Affairs Office under the Office of the 14th
Research Institute of CETC, a supervisor of Magnichip Co., Ltd., Chairman of the Board of Supervisors of
Nanjing Glarun-Atten Technology Co., Ltd., and Chairman of the Board of Supervisors of Nanjing Putian
Telecommunications Co., Ltd.
He Hui, male, born in 1985, holds a master's degree in management and is a senior accountant. He joined the
work in 2012, served successively as assistant accountant and deputy minister of the Finance Department of the
14th Research Institute of China Electronics Technology Group Corporation, and is currently the deputy
minister of the Finance Department of the 14th Research Institute of China Electronics Technology Group
Corporation and a supervisor of Nanjing Putian Telecommunications Co., Ltd.
Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co., Ltd.
Qiu Huizhen, female, born in 1973, holds a bachelor’s degree in economics and is a senior accountant. She
started her career in 1997, served successively as a representative of woman's congress and Secretary of the
CCYL Committee of Shaokou Township Government, Wan’an County, Jiangxi Province, cost accountant of the
Finance Department and CFO of Nanjing Putian Telecommunications Co., Ltd., Deputy Director of the
Personnel Department, Deputy Director of the Finance Department and Director of the Finance Department of
Nanjing Putian Telecommunications Co., Ltd., and is currently serving as Director of the Audit Discipline
Inspection and Risk Control Department and an employee supervisor of Nanjing Putian Telecommunications
Co., Ltd.
Senior executives:
General Manager Mr. Jiang Yi’s main work experience has previously been outlined in the section on directors.
Jia Haowen, female, born in 1980, holds a bachelor’s degree in management and is a senior human resource
manager. She started her career in 2002, and served successively as administrative management specialist and
sales representative at Shanghai Xinhaoshi Real Estate Co., Ltd.; In Nanjing Putian Telecommunications Co.,
Ltd., she served successively as Confidential Secretary, and Secretary of the CEO's Office, Assistant Director of
the Integrated Management Department, Assistant Director, Deputy Director and Director of the Human
Resources Department, Director of the Integrated Management Department (concurrently), Party Branch
Secretary of the Integrated Management Department, Director of the Multimedia Application Industry
Department in the HQ (concurrently), and Assistant General Manager. She is currently serving as Executive
Deputy General Manager of Nanjing Putian Telecommunications Co., Ltd., and Chair of Nanjing Southern
Telecom Co., Ltd.
Liao Rongchao, male, born in 1974, holds a master’s degree in accounting and is a senior accountant. He started
his career in 1997, and served successively as probationary accountant and assistant accountant at 200th Office
of the 2nd Department, accountant of the Finance Office and Deputy Director of the Finance Department in the
14th Research Institute of CETC. He is currently serving as Deputy General Manager and Chief Accountant of
Nanjing Putian Telecommunications Co., Ltd., and Chairman of Nanjing Putian Telege Intelligent Building Ltd.
Li Jing, female, born in 1975, holds a master’s degree in management and is a senior economist. She started her
career in 1996, and served successively as secretarial clerk and customs broker at Nanjing Mennekes Electric
Co., Ltd., purchaser and employee-employer relation management specialist at Nanjing Putian Computer
Industry Co., Ltd., investment administrator, assistant and Deputy Director of the Corporate Development
Department, Deputy Director of the Strategic Development Department, Deputy Director of the Comprehensive
Management Department, Deputy Director and Director of the Investment Management Department, and
Director of the Strategic Investment Department at Nanjing Putian Telecommunications Co., Ltd. She is
currently serving as Deputy General Manager and Secretary of the Board of Directors at Nanjing Putian
Telecommunications Co., Ltd., Chairman of Nanjing Putian Datang Information Electronics Co., Ltd., and
Chair of Nanjing Putian Changle Communication Equipment Co., Ltd.
Fu Guokai, male, born in 1990, holds a master’s degree in management and is an engineer. He started his career
in 2016, used to be a probationer in the Discipline Inspection, Supervision and Audit Department of the 14th
Research Institute of CETC, and is currently serving as General Counsel, Deputy Secretary of the Party
Committee and Chairman of the Labor Union at Nanjing Putian Telecommunications Co., Ltd.
Service in shareholder units
Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co., Ltd.
Applicable □Not applicable
Did he/she receive
remuneration and
Name of Position held in
Name of employee Term starts on Term expires on allowances from
shareholder unit shareholder unit
the shareholder
unit?
Director, General
Manager, and
CETC Glarun
Li Langping Deputy Secretary October 15, 2020 Yes
Group Co., Ltd.
of the Party
Committee
CETC Glarun Deputy General
Shen Xiaobing January 10, 2022 Yes
Group Co., Ltd. Manager
CETC Glarun Deputy General
Mei Lin June 3, 2022 Yes
Group Co., Ltd. Counsel
Information about
the service in the CETC Glarun Group Co., Ltd. is the controlling shareholder of the Company
shareholder unit
Service in other units
Applicable □Not applicable
Did he/she receive
Position held in remuneration and
Name of employee Name of other unit Term starts on Term expires on
other unit allowances from
other unit?
Glarun
Chairman of the
Li Langping Technology Co., December 3, 2020 No
Board
Ltd.
Glarun
Secretary of the
Li Langping Technology Co., December 3, 2020 No
Party Committee
Ltd.
Nanjing Lopu
Chairman of the
Shen Xiaobing Technology Co., February 10, 2022 No
Board
Ltd.
Nanjing Lopu Co., Chairman of the
Shen Xiaobing February 10, 2022 No
Ltd. Board
Secretary of the
General Party
Branch of the
The 14th Research
Shi Jiandong Structural April 6, 2023 Yes
Institute of CETC
Technology
Research
Department
Logistics
Company under
the Materials
and Equipment Deputy Secretary
Wang Xingyu Department of of the United Party January 5, 2022 No
the 14th Branch
Research
Institute of
CETC
Vice Director of
The 14th Research
Wang Xingyu the Materials and November 2, 2020 Yes
Institute of CETC
Equipment
Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co., Ltd.
Department
Southeast
Song Tiecheng Professor April 8, 2005 Yes
University
Shenzhen Hymson
Laser Intelligent
Gao Jing Financial Director January 15, 2019 Yes
Equipment Co.,
Ltd.
Changzhou
Hymson Jinyu
Gao Jing New Energy Director May 6, 2019 Yes
Technology Co.,
Ltd.
Grandall (Nanjing)
Huang Linkui Partner May 9, 2022 Yes
Law Firm
Magnichip Co.,
Mei Lin Supervisor June 15, 2021 No
Ltd.
Nanjing Glarun- Chairman of the
Mei Lin Atten Technology Board of December 10, 2021 No
Co., Ltd. Supervisors
Vice Director of
The 14th Research
He Hui the Finance November 6, 2020 Yes
Institute of CETC
Department
Penalties imposed by securities regulatory authorities in the past three years on the Company's directors, supervisors and senior
executives serving or leaving office during the reporting period
□Applicable Not applicable
3. Remuneration of directors, supervisors and senior executives
Decision-making procedures, basis for determination and actual payment of remuneration for directors, supervisors and senior
executives
The Company did not pay remuneration to its directors and supervisors, the directors and supervisors who held
administrative positions of the Company received remuneration according to their administrative positions.
Independent directors received independent director allowances from the Company, and the allowance standard
was decided by the Shareholders' General Meeting. The remuneration standards and assessment methods of
senior executives were decided by the Board of Directors.
For senior executives, the Company implemented the performance-based annual remuneration system, and
assessed and paid the senior executives according to its production and operation indicators and the completion
of the work undertaken by the senior executives.
Remuneration of directors, supervisors and senior executives of the Company during the reporting period
Unit: RMB 10,000
Did he/she
Total pre-tax receive
remuneration remuneration
Name Sex Age Post Service status
received from from related
the Company parties of the
Company
Chairman of
Li Langping Male 59 the Board of In service 0 Yes
Directors
Shen Xiaobing Male 45 Director In service 0 Yes
Jiang Yi Male 43 Director and In service 40.35 No
Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co., Ltd.
General
Manager
Shi Jiandong Male 50 Director In service 0 Yes
Wang Xingyu Male 45 Director In service 0 Yes
Independent
Song Tiecheng Male 56 In service 9 No
director
Independent
Gao Jing Female 55 In service 9 No
director
Independent
Huang Linkui Male 43 In service 9 No
director
Chairman of
Mei Lin Male 41 the Board of In service 0 Yes
Supervisors
He Hui Male 38 Supervisor In service 0 Yes
Qiu Huizhen Female 50 Supervisor In service 24.33 No
Executive
Jia Haowen Female 43 Deputy General In service 63.15 No
Manager
Deputy General
Liao Rongchao Male 49 Manager, Chief In service 43.94 No
Accountant
Deputy General
Manager and
Li Jing Female 48 Secretary of the In service 47.42 No
Board of
Directors
General
Fu Guokai Male 33 In service 36.72 No
Counsel
Sun Xigang Male 51 Vice Chairman Not in service 0 Yes
Total -- -- -- -- 282.91 --
Other information
□Applicable Not applicable
VI. Performance of duties by directors during the reporting period
1. Situation of the Board of Directors during the reporting period
Session Date of meeting Date of disclosure Resolution
The following proposals were reviewed and
approved at the meeting:
1. Proposal on by-election of Mr. Jiang Yi as a
director of the 8th Board of Directors of the
Company;
2. Proposal on amending the Articles of
The 4th Meeting of the 8th Association of the Company;
February 16, 2023 February 17, 2023
Board of Directors 3. Proposal on amending the Company’s
Rules of Procedure of the Board of Directors;
4. The proposal on the appointment of the
Company's general manager;
5. The proposal on convening the first
extraordinary general meeting of shareholders
in 2023.
The 5th Meeting of the 8th The following proposals were reviewed and
April 6, 2023 April 7, 2023
Board of Directors approved at the meeting:
Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co., Ltd.
1. Proposal on expected routine related party
transactions in 2023;
2. The proposal on the adjustment of members
of the Strategic Committee and the
Remuneration and Evaluation Committee of
the 8th Board of Directors;
3. The proposal on the formulation of the
Company’s Detailed Working Rules of the
Nomination Committee of the Board of
Directors;
4. The staffing plan of the Nomination
Committee of the Company’s 8th Board of
Directors;
5. The proposal on the adjustment of the
Company's securities affairs representative;
6. The proposal on amending the Annual
Work Procedures of the Audit Committee.
The following proposals were reviewed and
approved at the meeting:
1. Work Report of the Company’s Board of
Directors for 2022;
2. Work Report of the Company’s General
Manager for 2022;
3. The Company's annual final financial
accounts report for 2022;
4. The Company's Annual Financial Budget
Report for 2023;
5. The Company's Profit Distribution Plan for
2022;
6. The Company's Annual Report for 2022 and
its summary;
7. Proposal on Provision for Asset Impairment
The 6th Meeting of the 8th in 2022;
April 18, 2023 April 20, 2023
Board of Directors 8. The Company's Internal Control Evaluation
Report for 2022;
9. Proposal on applying for credit line from
financial company;
10. Proposal on applying for credit line from
banks;
11. Risk continuous assessment report for
CETC Finance Co., Ltd.;
12. Proposal on engaging an accounting firm;
13. Proposal on the remuneration plan of the
Company's senior executives in 2023;
14. The proposal on formulating the
Company's Financing and Guarantee
Management Measures;
15. Proposal on convening the annual general
meeting of shareholders in 2022.
The following proposals were reviewed and
approved at the meeting:
1. The Company's report for the first quarter
The 7th Meeting of the 8th
April 28, 2023 April 29, 2023 of 2023;
Board of Directors
2. The proposal for revising the Company's
Internal Control Deficiency Identification
Standards.
The 8th Meeting of the 8th July 26, 2023 July 27, 2023 The following proposals were reviewed and
Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co., Ltd.
Board of Directors approved at the meeting:
Proposal on applying for credit line from Bank
of Beijing;
The following proposals were reviewed and
approved at the meeting:
1. The work report of the general manager of
the Company for the first half of 2023;
2. The Company's budget implementation
report for the first half of 2023;
3. The Company's semi-annual report and
summary for 2023;
4. Risk continuous assessment report for
CETC Finance Co., Ltd.;
The 9th Meeting of the 8th
August 25, 2023 August 29, 2023 5. The proposal for amending the Company's
Board of Directors
Related Party Transaction Management
Measures;
6. The proposal for revising the Company's
Information Disclosure Management Rules;
7. The proposal for revising the Company's
Management Rules for the Registration of
Persons Informed of Inside Information;
8. The proposal for liquidating and closing
Chongqing Puhua Information Technology
Co., Ltd.
The following proposals were reviewed and
The 10th Meeting of the 8th approved at the meeting:
September 20, 2023 September 21, 2023
Board of Directors The proposal for liquidating and dissolving
Nanjing Putian Network Co., Ltd.
The following proposals were reviewed and
The 11th Meeting of the 8th
October 30, 2023 October 31, 2023 approved at the meeting:
Board of Directors
Report for the third quarter of 2023
The following proposals were reviewed and
approved at the meeting:
1. The proposal for liquidating and dissolving
the Seventh Branch of Nanjing
Communication Equipment Factory;
The 12th Meeting of the 8th 2. The proposal for amending the Company's
December 6, 2023 December 7, 2023
Board of Directors Working Rules of Independent Directors;
3. The proposal for amending the Company's
Working Rules for Independent Directors'
Annual Reports;
4. The proposal for adjusting the Company’s
internal management structure.
2. Attendances of directors at board meetings and general meetings of shareholders
Attendances of directors at board meetings and general meetings of shareholders
Number of Whether
board Number of there was a
Number of Number of Number of
meetings that attendances Number of failure to
on-site attendances attendances
Name of should be at board absences attend board
attendances at board at
director attended meetings via from board meetings in
at board meetings by shareholders'
during the communicati meetings person for
meetings proxy meetings
reporting on means two
period consecutive
Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co., Ltd.
times
Li Langping 9 1 8 0 0 No 1
Shen
9 0 9 0 0 No 0
Xiaobing
Jiang Yi 8 1 7 0 0 No 1
Shi Jiandong 9 1 8 0 0 No 0
Wang
9 1 8 0 0 No 0
Xingyu
Song
9 1 8 0 0 No 0
Tiecheng
Gao Jing 9 1 8 0 0 No 0
Huang
9 1 8 0 0 No 0
Linkui
Explanation for not attending board meetings in person for two consecutive times
Not applicable
3. Directors' objections to relevant matters of the Company
Did any directors raise any objections to the relevant matters of the Company
□Yes No
During the reporting period, directors did not raise any objections to the relevant matters of the Company.
4. Other explanations of directors' performance of their duties
Were directors' suggestions for the Company adopted
Yes □No
Explanation of whether the Company adopted suggestions made by directors
During the reporting period, all directors of the Company worked in strict accordance with the Company Law,
Securities Law, Listing Rules of Shenzhen Stock Exchange, Guidelines of Shenzhen Stock Exchange on
Standardized Operation of Listed Companies, and the Articles of Association of the Company, attended the
board meetings on time, carefully studied various proposals submitted to the Board of Directors according to
the actual situation of the Company and made prudent decisions, supervised and promoted the implementation
of resolutions of the Board of Directors, and safeguarded the legitimate rights and interests of the Company and
all shareholders.
VII. Situation of the special committees under the Board of Directors during the reporting
period
Number Important Details of
Name of the of Date of Content of opinions and Performanc matters
Members
committee meetings meeting the meeting suggestions put e of duties objected (if
held forward any)
Gao Jing, Shi 1. Review of 1. The Company's
Audit and
Jiandong, the annual report and
Risk Control
Wang Company's summary for 2022
Committee 1 April 13, 2023
Xingyu, annual report were reviewed
of the Board
Song and summary and approved;
of Directors
Tiecheng, for 2022; 2. The proposal
Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co., Ltd.
Huang 2. Review of on engaging an
Linkui the proposal audit firm for the
on engaging Company in 2023
an was reviewed and
accounting approved, and it
firm; was agreed to
propose to the
Board of
Directors to
engage WUYIGE
Certified Public
Accountants LLP
(Special General
Partnership) as
the financial and
internal control
audit institution of
the Company in
2023.
Gao Jing, Shi
Jiandong, Review of
Audit and The Company's
Wang the
Risk Control report for the first
Xingyu, Company's
Committee 1 April 26, 2023 quarter of 2023
Song report for the
of the Board was reviewed and
Tiecheng, first quarter
of Directors approved
Huang of 2023
Linkui
Gao Jing, Shi
Review of
Jiandong, The Company's
Audit and the
Wang semi-annual
Risk Control Company's
Xingyu, August 21, report and
Committee 1 semi-annual
Song 2023 summary for 2023
of the Board report and
Tiecheng, were reviewed
of Directors summary for
Huang and approved
2023
Linkui
Gao Jing, Shi
Jiandong, Review of
Audit and The report for the
Wang the
Risk Control third quarter of
Xingyu, October 25, Company’s
Committee 1 2023 was
Song 2023 report for the
of the Board reviewed and
Tiecheng, third quarter
of Directors approved
Huang of 2023
Linkui
Review of
The proposal on
Song the proposal
Remuneratio the remuneration
Tiecheng, on the
n and plan of the
Jiang Yi, remuneration
Evaluation Company's senior
Wang 1 April 13, 2023 plan of the
Committee executives in
Xingyu, Gao Company's
of the Board 2023 was
Jing, Huang senior
of Directors reviewed and
Linkui executives in
approved
2023
VIII. Work of the Board of Supervisors
The Board of Supervisors tried to identify risks of the Company in supervision activities during the reporting period
Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co., Ltd.
□Yes No
The Board of Supervisors had no objection to the supervision matters during the reporting period.
IX. Employees of the Company
1. Number of employees, areas of expertise and educational attainment
Number of employees in the parent company at the end of the
134
reporting period (unit: person)
Number of employees in major subsidiaries at the end of the
646
reporting period (unit: person)
Total number of employees at the end of the reporting period
784
(unit: person)
Total number of paid employees in the current period (unit:
956
person)
Number of retired employees who receive payments from the
338
parent company and major subsidiaries (unit: person)
Areas of expertise
Area of expertise Number of employees with the expertise (unit: person)
Production personnel 156
Sales personnel 233
Technical personnel 292
Financial personnel 25
Administrative personnel 78
Total 784
Education attainment
Education attainment Number of persons
Master degree or above 22
Bachelor’s degree 352
Junior college diploma 267
Senior high school and below 143
Total 784
2. Remuneration policy
The Company strictly implements the national, provincial and municipal laws and regulations, and standardizes
the distribution and payment of remuneration and benefits. In order to further mobilize the enthusiasm, initiative
and creativity of employees, the Company implements an efficiency-oriented and performance-based
remuneration distribution mechanism, and develops remuneration and performance appraisal methods for
different positions according to the characteristics of different positions. Additionally, the Company provides its
employees with five social insurances, housing provident fund, and enterprise annuity in accordance with
relevant national regulations.
Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co., Ltd.
3. Training plans
According to the Company's development plan and the principle of Party-led talent management, the Company
upholds new development concepts in the new development stage and focuses on talent work deployment in the
new era. The Company places great importance on the development of employees’ capabilities, with particular
emphasis on three aspects: training and education, on-the-job cultivation, and practical experience, and
improves its training system to enhance the quality of its talent pool. The Company also prioritizes the training
of innovative and versatile talents, and strengthens training through a layered and graded approach to build up
reserves of talents for its innovation and transformation.
4. Labor outsourcing
□Applicable Not applicable
X. Profit distribution and conversion of capital provident fund to share capital
Development, implementation or adjustment of profit distribution policies, especially cash dividend policies during the reporting
period
□Applicable Not applicable
During the reporting period, the Company made profits and the profit available to shareholders of the parent company was positive,
but no cash dividend distribution plan was proposed
□Applicable Not applicable
Profit distribution and conversion of capital provident fund to share capital during the reporting period
□Applicable Not applicable
The Company planed not to distribute cash dividends and bonus shares, or increase its share capital from provident fund.
XI. Implementation of the Company’s equity incentive plan, employee stock ownership plan
or other employee incentive measures
□Applicable Not applicable
During the reporting period, the Company had no equity incentive plan, employee stock ownership plan or other employee
incentive measures and implementation of such plans and measures.
XII. Construction and implementation of internal control system during the reporting
period
1. Construction and implementation of internal control
The Company consistently improves its rules and regulations to ensure compliance with legal and regulatory
requirements and orderly execution of operations. In 2023, the Company developed or revised a total of 44 rules:
3 at the upper level, 18 at the mid-level, and 23 at the lower level. In reinforcing Party leadership, the Company
added and updated several systems, including the Working Rules of the CCP Committee at Nanjing Putian
Telecommunications Co., Ltd., the Detailed Rules for the Implementation of the Party Ideology Work
Accountability System under New Circumstances, the Work Report Evaluation and Assessment Measures for
Primary Party Organization Secretaries in Party Building, the Party Building Work Assessment and Evaluation
Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co., Ltd.
Measures, and the Comprehensive Checklist for the Party Committee’s Implementation of Strict Party
Discipline. In corporate governance, the Company refined the Articles of Association, the Rules of Procedure of
the Board of Directors, the Detailed Working Rules of the Nomination Committee of the Board of Directors, the
Information Disclosure Management Rules, and the Rules for the Registration of Persons Informed of Inside
Information. In daily business management, the Company introduced or revised rules including the Recruitment
and Employment Management Rules, Management Measures for Key Young Staff Members, Funds
Management Measures, Financing and Guarantee Management Measures, Financial Accounting Management
Measures, Rules for Science and Technology Innovation Management, Strategic Planning Management Rules,
Customer Credit Management Measures, Marketing and Sales Management Measures, Comprehensive Risk
Management Measures, and Compliance Management Measures. These rules span strategic technology, human
resource management, financial and asset management, legal and compliance management, investment
management, risk control, marketing, quality, and procurement management, and other work related to the daily
production and operation of the Company, thus ensuring efficient operational processes.
To further enhance its internal control structure, the Company established a Legal and Compliance Department
charged with refining foundational internal control rules and developing a comprehensive internal control
mechanism. Adhering to graded and categorized rules, departments were organized to draft, amend, abolish,
and clarify rules and regulations, leading the compilation and maintenance of these rules and regulations.
The Company implemented safety standardization and integrated management system of quality, environment
and safety, and prepared a number of documents including safety standardization documents, integrated
management system manuals, and procedure documents. The Company supervised and evaluated the design
and implementation of internal control rules and regulations by carrying out annual internal control self-
evaluation, external audit of internal control, inspection and acceptance of comprehensive management system,
and carrying out special inspections from time to time. According to the requirements of the Company's internal
control rules and relevant regulations, internal control has been established in all major aspects and effectively
implemented, achieving the goal of internal control. No major defects in internal control of financial reports and
non-financial reports have been found. To meet needs of operation and business development, the Company
will continue to improve the construction of internal control system, strengthen the enforcement of internal
control system to promote the healthy development of the Company.
2. Details of major internal control defects found during the reporting period
□Yes No
XIII. Management and control of subsidiaries by the Company during the reporting period
Problems
Integration Settlement Follow-up
Company name Integration plan encountered in Solutions taken
progress progress settlement plan
integration
None Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable
Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co., Ltd.
XIV. Internal control evaluation report or internal control audit report
1. Internal control evaluation report
Date of disclosing full-text internal
April 27, 2024
control evaluation report
Index of the disclosed full-text internal CNINFO (www.cninfo.com.cn), "Internal Control Evaluation Report 2023 of Nanjing
control evaluation report Putian Telecommunications Co., Ltd."
Proportion of the total assets of the unit
included in the evaluation scope to the
100.00%
total assets in the Company's
consolidated financial statements
Proportion of the operating revenue of
the unit included in the evaluation scope
to the operating revenue in the 100.00%
Company’s consolidated financial
statements
Defect identification criteria
Category Financial reporting Non-financial reports
Laws and regulations: Minor violations
that have been corrected are general
defects, violations that result in
punishment are important defects, and
serious violations that lead to severe
punishment or criminal liability are
major defects.
Any of the following circumstances
Operation: Temporary halts in
(including but not limited to the
production that can be restored within
circumstances) shall generally be
half a day are considered as general
deemed as a "major defect" in the
defects, halts lasting up to 2 days are
internal control of financial reports:
considered as important defects, and
（1） Senior executives abuse their
halts lasting 3 days or more are
powers and commit major fraud;
considered as major defects.
（2）Any reported or disclosed financial
Reputation: When negative news
reports are corrected due to the discovery
circulates within the Company without
of significant accounting errors in
greatly affecting its reputation, it is
previous years;
Qualitative criteria considered as a general defect. If
（3） It is found that there is a material
negative news spreads in a certain area
misstatement in the current financial
and causes significant damage to the
statements, but the misstatement was not
Company's reputation, it is considered as
found in the internal control process;
an important defect. When negative news
（4）The supervision of internal control
circulates throughout the country and
by internal audit institutions is not
causes significant damage to the
effective;
Company's reputation, it is considered as
（5）Major or important defects that
a major defect.
have been identified and reported to the
Safety: General defects are those that
management team have not been
cause brief impacts on the health of
rectified within a reasonable time limit.
employees or citizens that can be
restored to normal within a short period.
Important defects are those that cause the
death of an employee or citizen, or
require a longer period of time to recover
their health. Major defects are those that
cause the death of multiple employees or
Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co., Ltd.
citizens or result in irreparable damage to
their health.
Environment: Environmental pollution
and damage that are within a controllable
range and do not cause permanent
environmental impact are considered as
general defects. Important defects are
those that cause significant pollution to
the surrounding environment and require
high restoration costs. Major defects are
those that cause permanent pollution or
irreparable damage to the surrounding
environment;
Any of the following circumstances
(including but not limited to the
circumstances) shall generally be
deemed as a "major defect" in the
internal control of non-financial reports:
(1) Serious violation of national laws,
administrative regulations and normative
documents, causing adverse effects;
(2) Any important decisions, important
issues, important personnel appointments
and dismissals, and large sum payments
were not approved through the collective
decision-making process;
(3) Serious loss of management
personnel and technical personnel in key
positions;
(4) Important business operations related
to the Company's production and
operation lack institutional controls or
suffer from institutional system failures;
(5) Major/important defects in internal
control are not rectified in time.
Potential errors or omissions of total
profit in financial report: Errors or
omissions that are less than 2% of the
total profit/RMB 500,000 are general
defects. Errors or omissions that are
greater than or equal to 2% of the total
profit/RMB 500,000 and less than 3% of
the total profit/RMB 3 million are Potential assets and capital losses: Losses
important defects. Errors or omissions that are less than RMB 100,000 are
that are greater than or equal to 3% of the general defects; Losses that are greater
total profit/RMB 3 million are major than or equal to RMB 100,000 and less
Quantitative criteria
defects. than RMB 1 million are important
Potential errors or omissions of total defects; Losses that are greater than or
assets in financial reports: Errors or equal to RMB 1 million are major
omissions that are less than 1% of the defects.
total assets/RMB 2 million are general
defects. Errors or omissions that are
greater than or equal to 1% of the total
assets/RMB 2 million and less than 2%
of the total assets/RMB 100 million are
important defects. Errors or omissions
that are greater than or equal to 2% of the
Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co., Ltd.
total assets/RMB 100 million are major
defects.
Potential errors or omissions of operating
revenue in financial reports: Errors or
omissions that are less than 0.5% of the
total operating revenue/RMB 2 million
are general defects. Errors or omissions
that are greater than or equal to 0.5% of
the total operating revenue/RMB 2
million and less than 1% of the total
operating revenue/RMB 100 million are
important defects. Errors or omissions
that are greater than or equal to 1% of the
total operating revenue/RMB 100 million
are major defects.
Potential errors or omissions of owners'
equity in financial reports: Errors or
omissions that are less than 0.5% of the
total owners' equity/RMB 1 million are
general defects. Errors or omissions that
are greater than or equal to 0.5% of the
total owners' equity/RMB 1 million and
less than 1% of the total owners'
equity/RMB 5 million are important
defects. Errors or omissions that are
greater than or equal to 1% of the total
owners' equity/RMB 5 million are major
defects.
Number of major defects in financial
0
reports
Number of major defects in non-financial
0
reports
Number of important defects in financial
0
reports
Number of important defects in non-
0
financial reports
2. Internal control audit report
Applicable □Not applicable
Consideration paragraph in internal control audit report
We believe that Nanjing Putian maintained effective internal control over financial reports in all major aspects in accordance with
the Basic Standards for Internal Control of Enterprises and relevant regulations.
Disclosure of internal control audit report Disclosed
Disclosure date of full-text internal control audit report April 27, 2024
CNINFO (www.cninfo.com.cn), “Internal Control Audit
Disclosure index of the full-text internal control audit report
Report 2023 of Nanjing Putian Telecommunications Co., Ltd.”
Type of opinions in internal control audit report Standard unqualified opinion
Whether there are major defects in non-financial reports No
Did the accounting firm issue an internal control audit report with non-standard opinions
□Yes No
Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co., Ltd.
Whether the internal control audit report issued by the accounting firm is consistent with the self-evaluation report of the Board of
Directors
Yes □No
XV. Rectification of problems found during self-inspection in special actions for listed
company governance
The self-examination of the company's "Special action on Listed Company Governance" in April 2021 has been
rectified in October 2022.
Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co., Ltd.
Section V Environmental and Social Responsibilities
I. Major environmental protection issues
Whether the listed company and its subsidiaries are key pollutant discharge units announced by the environmental protection
department
□Yes No
Administrative punishment due to environmental problems during the reporting period
Influence on the
Rectification
Name of company Reasons for production and
Violation Penalty measures taken by
or subsidiary punishment operation of the
the Company
listed company
- - - - - -
Refer to other environmental information disclosed by key pollutant discharge units
-
Measures taken to reduce carbon emissions during the reporting period and their effects
□Applicable Not applicable
Reasons for not disclosing other environmental information
The Company and its subsidiaries are not key pollutant discharge units announced by the environmental
protection department. During the reporting period, the Company strictly implemented the relevant national
environmental protection laws and regulations, and there was no violation of environmental protection laws and
regulations, and there was no administrative punishment by the environmental protection department for
environmental violations.
II. Social responsibilities
For details, please refer to the 2023 Environmental, Social and Corporate Governance Report released by the
Company on the same day.
III. Consolidation and expansion of the achievements in poverty alleviation and rural
revitalization efforts
The Company is committed to supporting special groups, offering aid and regular visits to employees facing
difficulties. It aims to handle concrete affairs, give support and solve problems for employees in difficulty,
ensuring that these employees genuinely feel the support and warmth of the Labor Union and the Company.
This has been a foundational practice of the Company for many years.
Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co., Ltd.
Section VI Important Matters
I. Implementation of commitments
1. Commitments fulfilled by the actual controllers, shareholders, related parties, purchasers and the
Company during the reporting period and commitments not fulfilled by the end of the reporting period
Applicable □Not applicable
Subject of Commitment Type of Contents of Date of Fulfillment
Valid period
commitment party commitments commitments commitment status
Commitments
See
China on horizontal
"Commitment
Electronics competition,
1" under "2. August 31, Being fulfilled
Technology related party Long-term
Details of 2021 normally
Group transactions
commitments"
Corporation and capital
for details.
occupation
Commitments
China on horizontal
Electronics competition, See
August 31, Being fulfilled
Technology related party “Commitment Long-term
2021 normally
Group transactions 2”
Corporation and capital
occupation
Commitments
China on horizontal
Electronics competition, See
August 31, Being fulfilled
Technology related party “Commitment Long-term
2021 normally
Commitments Group transactions 3”
made in Corporation and capital
acquisition occupation
reports or Commitment
equity change on maintaining
reports the
See
CETC Glarun independence October 12, Being fulfilled
“Commitment Long-term
Group Co., Ltd. of Nanjing 2022 normally
4”
Putian
Telecommunica
tions Co., Ltd.
Commitment
on avoiding
horizontal
See
CETC Glarun competition October 12, Being fulfilled
“Commitment Long-term
Group Co., Ltd. with Nanjing 2022 normally
5”
Putian
Telecommunica
tions Co., Ltd.
Commitment
on See
CETC Glarun October 12, Being fulfilled
standardization “Commitment Long-term
Group Co., Ltd. 2022 normally
and reduction 6”
of related party
Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co., Ltd.
transactions
Commitments
on horizontal
China Potevio
competition, See
Information October 13,
related party “Commitment April 18, 2023 Fulfilled
Industry Co., 2020
transactions 7”
Ltd.
and capital
occupation
China Potevio
Commitments
Information
on horizontal
Industry Co.,
competition, See
Ltd.; China October 13,
related party “Commitment April 18, 2023 Fulfilled
Potevio 2020
transactions 8”
Information
and capital
Industry Group
occupation
Co., Ltd.
China Potevio
Information
Industry Co.,
See
Ltd.; China Other October 13,
“Commitment April 18, 2023 Fulfilled
Potevio commitments 2020
9”
Commitments Information
made during Industry Group
asset Co., Ltd.
reorganization Xu Qian; Wang
Wenkui; Li
Tong; Liu Yun;
Wang Jinfeng;
Qin Zhen; Tang
Fuxin; Xie See
Other November 25, Being fulfilled
Manlin; Du “Commitment Long-term
commitments 2020 normally
Xiaorong; Jia 10”
Haowen; Lei
Xu; Liu
Xiaodong;
Wang Huailin;
Li Jing
China Potevio
Information
Industry Co.,
See
Ltd.; China Other November 25,
“Commitment April 18, 2023 Fulfilled
Potevio commitments 2020
11”
Information
Industry Group
Co., Ltd.
Commitments
on horizontal
China Potevio
competition, See
Information
Other related party “Commitment April 8, 2018 April 18, 2023 Fulfilled
Industry Co.,
commitments transactions 12”
Ltd.
made to and capital
minority occupation
shareholders of Commitments
China Potevio
the Company on horizontal See
Information
competition, “Commitment April 8, 2018 April 18, 2023 Fulfilled
Industry Co.,
related party 13”
Ltd.
transactions
Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co., Ltd.
and capital
occupation
Commitments
on horizontal
China Potevio
competition, See
Information
related party “Commitment April 8, 2018 April 18, 2023 Fulfilled
Industry Co.,
transactions 14”
Ltd.
and capital
occupation
Commitments
on horizontal
China Potevio
competition, See
Information
related party “Commitment April 8, 2018 April 18, 2023 Fulfilled
Industry Group
transactions 15”
Corporation
and capital
occupation
Commitments
on horizontal
China Potevio
competition, See
Information
related party “Commitment April 8, 2018 April 18, 2023 Fulfilled
Industry Group
transactions 16”
Corporation
and capital
occupation
Commitments
on horizontal
China Potevio
competition, See
Information
related party “Commitment April 8, 2018 April 18, 2023 Fulfilled
Industry Group
transactions 17”
Corporation
and capital
occupation
China Potevio
See
Information Other
“Commitment June 19, 2018 April 18, 2023 Fulfilled
Industry Group commitments
18”
Corporation
Is the
commitment
Yes
fulfilled on
time
If a
commitment is
not fulfilled on
time, the
specific reasons
for the failed Not applicable
fulfillment and
the next work
plan shall be
specified in
detail
2. Details of commitments
Commitment 1
Commitment made by: China Electronics Technology Group Corporation
Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co., Ltd.
Contents of commitments
After the review by the State-owned Assets Supervision and Administration Commission of the State Council
and the approval by the State Council, China Potevio Information Industry Group Co., Ltd. (hereinafter referred
to as "China Potevio") was transferred to China Electronics Technology Group Corporation (hereinafter referred
to as "the Company") free of charge and became a wholly-owned subsidiary of the Company (hereinafter
referred to as "the Reorganization"). The Reorganization will result in the Company becoming the indirect
controlling shareholder of Nanjing Putian Telecommunications Co., Ltd. (hereinafter referred to as the "Listed
Company"), a listed company affiliated to China Potevio. As the purchaser of the Listed Company, in order to
ensure the independence of the Listed Company in terms of assets, personnel, finance, business and
organizations, the Company hereby makes the following commitments:
1. Personnel independence
(1) The Company ensures that the general manager, deputy general manager, chief financial officer, secretary of
the Board of Directors and other senior executives of the Listed Company will not hold other administrative
positions except directors and supervisors in the Company and other enterprises and institutions controlled by
the Company (hereinafter referred to as “Subordinate Enterprises and Institutions"), and will not receive
remuneration from the Company and its Subordinate Enterprises and Institutions.
(2) The Company ensures that the financial personnel of the Listed Company will not work part-time in the
Company and its Subordinate Enterprises and Institutions.
2. Financial independence
(1) The Company ensures that the Listed Company sets up an independent financial accounting department, has
independent financial accounting system and financial management rules, and makes financial decisions
independently.
(2) The Company ensures that the Listed Company remains independent in financial decision-making, and that
the Company and its Subordinate Enterprises and Institutions do not interfere in the use of funds by the Listed
Company.
(3) The Company ensures that the Listed Company independently opens accounts in banks and settle revenue
and expenditures, and independently files tax returns and fulfills tax obligations according to laws.
3. Organizational independence
(1) The Company ensures that the Listed Company and its subsidiaries establish and improve their corporate
governance structures according to laws and can operate independently, and that the offices and production and
business premises of the Listed Company are separated from the Company and its Subordinate Enterprises and
Institutions.
(2) The Company ensures that the Listed Company and its subsidiaries operate independently without
subordinate relationship with the Company’s functional departments.
4. Asset independence
(1) The Company ensures that the Listed Company has independent and complete assets.
(2) The Company ensures that the Company and its Subordinate Enterprises and Institutions do not illegally
Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co., Ltd.
occupy assets, funds and other resources of the Listed Company.
5. Business independence
(1) The Company ensures the independence of the Listed Company’s business and operation activities.
(2) The Company ensures that the Listed Company signs contracts and carries out business independently,
forms an independent and complete business system, implements independent accounting of operation and
management, bears liabilities and risks independently, and has the ability to operate independently and
continuously in the market.
This commitment shall remain in force during the period during which the Company has control over the Listed
Company. If the Company fails to fulfill the above commitment and causes losses to the Listed Company, the
Company will bear corresponding liability for compensation.
Commitment 2
Commitment made by: China Electronics Technology Group Corporation
Contents of commitments
After the review by the State-owned Assets Supervision and Administration Commission of the State Council
and the approval by the State Council, China Potevio Information Industry Group Co., Ltd. (hereinafter referred
to as "China Potevio") was transferred to China Electronics Technology Group Corporation (hereinafter referred
to as "the Company") free of charge and became a wholly-owned subsidiary of the Company (hereinafter
referred to as "the Reorganization"). The Reorganization will result in the Company becoming the indirect
controlling shareholder of Nanjing Putian Telecommunications Co., Ltd. (hereinafter referred to as the "Listed
Company"), a listed company affiliated to China Potevio. As the purchaser of the Listed Company, in order to
avoid horizontal competition and safeguard the interests of public shareholders, the Company hereby makes the
following commitment:
From the date of issuance of this Letter of Commitment, the Company will further investigate whether there is
horizontal competition with the Listed Company. If there is horizontal competition with the Listed Company,
the Company will strengthen internal coordination and control management to ensure the healthy and
sustainable development of the Listed Company without damaging the interests of the Listed Company and its
public investors; If there is no horizontal competition, during the period when the Company directly or
indirectly maintains substantial equity control over the Listed Company, it will strictly abide by the relevant
rules formulated by the CSRC and the stock exchange and the Articles of Association of the Listed Company,
and will not leverage its control over the Listed Company to engage in horizontal competition that harms the
legitimate rights and interests of the Listed Company and its minority shareholders.
The above Letter of Commitment shall take effect from the date of issuance of the Letter of Commitment, and
shall remain valid during the legal and effective existence of the Listed Company and the period when the
Company is the actual controller of the Listed Company.
Commitment 3
Commitment made by: China Electronics Technology Group Corporation
Contents of commitments
Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co., Ltd.
After the review by the State-owned Assets Supervision and Administration Commission of the State Council
and the approval by the State Council, China Potevio Information Industry Group Co., Ltd. (hereinafter referred
to as "China Potevio") was transferred to China Electronics Technology Group Corporation (hereinafter referred
to as "the Company") free of charge and became a wholly-owned subsidiary of the Company (hereinafter
referred to as "the Reorganization"). The Reorganization will result in the Company becoming the indirect
controlling shareholder of Nanjing Putian Telecommunications Co., Ltd. (hereinafter referred to as the "Listed
Company"), a listed company affiliated to China Potevio. As the acquirer of the Listed Company, in order to
ensure the legitimate rights and interests of the Listed Company and its minority shareholders, the Company
makes the following commitment concerning regulating related party transactions between the Company and
the Listed Company:
1. The Company and its subordinate units controlled by the Company will try their best to avoid or reduce
unnecessary related party transactions with the Listed Company and its subsidiaries; Related business
transactions or transactions that are necessary or reasonable will be conducted on the basis of equality and
voluntariness and in accordance with the principles of fairness, impartiality and openness, and the transaction
prices will be reasonably determined based on market prices. For related party transactions that are difficult to
compare with market prices or subject to pricing limitations, the standards of relevant costs and profits should
be clearly defined in contracts, and decision-making procedures should be performed in accordance with
relevant laws and regulations, normative documents and the Articles of Association of the Listed Company, so
as to ensure that the legitimate rights and interests of the Listed Company and other shareholders will not be
damaged through related party transactions, and information disclosure obligations should be performed in
accordance with relevant regulations.
2. Any agreement and arrangement made by the Company, its controlled subordinate enterprises and the Listed
Company on related affairs and related party transactions shall not prevent them from conducting business
dealings or transactions with any third party for their own benefit under the same competitive conditions in the
market.
This Letter of Commitment shall remain valid during the legal and valid existence of the Listed Company and
the period when the Company is the actual controller of the Listed Company. If the Listed Company suffers
losses due to the Company's violation of the commitment under this Letter of Commitment, the Company will
bear corresponding compensation liabilities according to laws.
Commitment 4
Commitment made by: CETC Glarun Group Co., Ltd.
Contents of commitments
As the acquirer of NXT B, the Company hereby makes the following commitment to ensure the independence
of the Listed Company in assets, personnel, finance, business and organizations after the completion of this
acquisition:
1. Personnel independence
(1) The Company ensures that the general manager, deputy general manager, chief financial officer, secretary of
the Board of Directors and other senior executives of the Listed Company will not hold other positions except
directors and supervisors in the Company and other enterprises and institutions controlled by the Company
Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co., Ltd.
(hereinafter referred to as “Subordinate Enterprises and Institutions"), and will not receive remuneration from
the Company and its Subordinate Enterprises and Institutions.
(2) The Company ensures that the financial personnel of the Listed Company will not work part-time in or
receive remuneration from the Company and its Subordinate Enterprises and Institutions.
(3) The Company ensures that the Listed Company has complete and independent labor, personnel and
remuneration management systems, and that these systems are completely independent of the Company and
other enterprises and institutions controlled by the Company.
2. Financial independence
(1) The Company ensures that the Listed Company sets up an independent financial accounting department, has
independent financial accounting system and financial management rules, and makes financial decisions
independently.
(2) The Company ensures that the Listed Company remains independent in financial decision-making, and that
the Company and its Subordinate Enterprises and Institutions do not interfere in the use of funds by the Listed
Company.
(3) The Company ensures that the Listed Company independently opens accounts in banks and settle revenue
and expenditures, and independently files tax returns and fulfills tax obligations according to laws.
(4) The Company ensures that the financial personnel of the Listed Company do not serve concurrently in the
Company and its Subordinate Enterprises and Institutions.
3. Organizational independence
(1) The Company ensures that the Listed Company and its subsidiaries establish and improve their corporate
governance structures according to laws, establish independent and complete organizations, and operate
independently, and that the office and production and business premises of the Listed Company are separated
from the Company and its Subordinate Enterprises and Institutions, without confusion among their
organizations.
(2) The Company ensures that the Listed Company and its subsidiaries operate independently without
subordinate relationship with the Company’s functional departments.
4. Asset independence
(1) The Company ensures that the Listed Company has independent and complete assets.
(2) The Company ensures that the Company and its Subordinate Enterprises and Institutions do not illegally
occupy assets, funds and other resources of the Listed Company.
5. Business independence
(1) The Company ensures the independence of the Listed Company’s business and operation activities.
(2) The Company ensures that the Listed Company has assets, personnel and qualifications to independently
carry out business activities, sign contracts and carry out business independently, forms an independent and
complete business system, implements independent accounting of operation and management, bears liabilities
and risks independently, and has the ability to operate independently and continuously in the market.
Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co., Ltd.
(3) In case of necessary related party transactions between the Company/its Subordinate Enterprises and
Institutions and the Listed Company, agreements shall be signed according to laws, and necessary legal
procedures shall be performed in accordance with relevant laws, regulations and Articles of Association of the
Listed Company.
This commitment shall remain valid during the legal and valid existence of the Listed Company and the period
when the Company is the controlling shareholder of the Listed Company. If the Company fails to fulfill the
above commitment and causes losses to the Listed Company, the Company will bear corresponding liability for
compensation.
Commitment 5
Commitment made by: CETC Glarun Group Co., Ltd.
Contents of commitments
The main business of the Company is not identical or similar to that of the Listed Company. Before this
acquisition, the actual controller of the Listed Company was China Electronics Technology Group Corporation
(hereinafter referred to as "CETC"). After the completion of this acquisition, the actual controller of the Listed
Company is still CETC. This acquisition is carried out between different subjects controlled by the same actual
controller, without causing changes in the actual controller of the Listed Company and the related parties of the
Listed Company. Therefore, this acquisition will not cause new horizontal competition between the related
parties and the Listed Company.
In order to avoid horizontal competition and safeguard the interests of public shareholders, the Company hereby
makes the following commitment:
I. As of the date of issuance of this Letter of Commitment, the Company and other enterprises controlled by the
Company do not engage in or participate in any business or activities that constitutes a substantial competition
against the Listed Company in its main business.
II. After the completion of this acquisition, the Company and other enterprises controlled by the Company will
not directly or indirectly engage in the business same as the main business of the Listed Company.
III. After the completion of this acquisition, the Company ensures that the Company and its subordinate units
will not have substantial horizontal competition against the Listed Company in the future through internal
coordination and control management. If the Company and its subordinate units get business opportunities to
engage in new businesses that may result in horizontal competition against the Listed Company, the Company
and its subordinate units will give priority to offering the business opportunities of the said new businesses to
the Listed Company for selection, and make their best efforts to enable the business opportunities of the said
new businesses to transfer to the Listed Company.
If the Listed Company gives up the business opportunities of the said new businesses, the Company and its
subordinate units can operate the relevant new businesses on their own, but in the future, with the needs of
business development, the Listed Company will still enjoy the following rights as permitted by the applicable
laws and regulations and relevant regulatory rules:
1. The Listed Company has the right to purchase assets and equity related to the above businesses from the
Company and its subordinate units for one or more times;
2. In addition to acquisition, the Listed Company may, as permitted by applicable laws, regulations and relevant
regulatory rules, choose to operate the assets and/or businesses related to the above businesses of the Company
and its subordinate units by means of entrusted management, lease, contracted operation and licensed use.
Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co., Ltd.
IV. This Letter of Commitment shall remain valid during the legal and effective existence of the Listed
Company and the period when the Company is the controlling shareholder of the Listed Company; From the
date of issuance of this Letter of Commitment, if the Listed Company suffers losses due to the violation of the
commitment under this Letter of Commitment by the Company or its subordinate units, the Company will bear
corresponding compensation liabilities according to laws.
If the commitment hereunder is impossible to fulfill or needs to be adjusted due to objective reasons such as
policy adjustment and market changes, the Company and the Listed Company will give public explanations to
the market in advance to fully disclose the reasons for adjustment or failure to fulfill the commitment, and
propose corresponding solution.
Commitment 6
Commitment made by: CETC Glarun Group Co., Ltd.
Contents of commitments
After the completion of this acquisition, the Listed Company will continue to strictly comply with the
requirements of relevant laws, regulations and the Listing Rules, abide by the Articles of Association and other
provisions on related party transactions, perform necessary legal procedures, conduct related party transactions
in accordance with legal and effective agreements, give full play to the role of independent directors in practical
work, follow the principles of fairness, impartiality and openness, and fulfill information disclosure obligations,
thus protecting the interests of minority shareholders. In order to reduce and regulate related party transactions,
and safeguard the legitimate rights and interests of the Listed Company and its public shareholders, the
Company makes the following commitment concerning regulating related party transactions between the
Company and the Listed Company:
1. The Company and its subordinate units controlled by the Company will try their best to avoid or reduce
unnecessary related party transactions with the Listed Company and its subsidiaries; Related business
transactions or transactions that are necessary or reasonable will be conducted on the basis of equality and
voluntariness and in accordance with the principles of fairness, impartiality and openness, and the transaction
prices will be reasonably determined based on market prices. For related party transactions that are difficult to
compare with market prices or subject to pricing limitations, the standards of relevant costs and profits should
be clearly defined in contracts, and decision-making procedures should be performed in accordance with
relevant laws and regulations, normative documents and the Articles of Association of the Listed Company, so
as to ensure that the legitimate rights and interests of the Listed Company and other shareholders will not be
damaged through related party transactions, and information disclosure obligations should be performed in
accordance with relevant regulations.
2. Any agreement and arrangement made by the Company, its controlled subordinate enterprises and the Listed
Company on related affairs and related party transactions shall not prevent them from conducting business
dealings or transactions with any third party for their own benefit under the same competitive conditions in the
market.
This Letter of Commitment shall remain valid during the legal and valid existence of the Listed Company and
the period when the Company is the controlling shareholder of the Listed Company. If the Listed Company
suffers losses due to the Company's violation of the commitment under this Letter of Commitment, the
Company will bear corresponding compensation liabilities according to laws.
If the commitment hereunder is impossible to fulfill or needs to be adjusted due to objective reasons such as
policy adjustment and market changes, the Company and the Listed Company will give public explanations to
Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co., Ltd.
the market in advance to fully disclose the reasons for adjustment or failure to fulfill the commitment, and
propose corresponding solution.
Commitment 7
Commitment made by: China Potevio Information Industry Co., Ltd.; China Potevio Information Industry
Group Co., Ltd.
Contents of commitments
1. The Company or the enterprises controlled by the Company will minimize related party transactions with
Nanjing Putian Telecommunications Co., Ltd. (hereinafter referred to as "Nanjing Putian") and its subsidiaries
and branches.
2. Related party transactions that are necessary or reasonable shall be conducted on the basis of equality and
voluntariness and in accordance with the principles of fairness, impartiality and compensation for equal value.
The Company or the enterprise controlled by the Company will sign a related party transaction agreement with
Nanjing Putian or its subsidiaries in accordance with the laws, and transaction prices will be determined
according to the reasonable prices recognized by the market to ensure the fairness of the related party
transaction prices; In accordance with relevant laws, regulations, rules, other normative documents and the
Articles of Association of Nanjing Putian or its subsidiaries, fair procedures such as related party transaction
decision-making and vote avoidance shall be performed, and information shall be disclosed in a timely manner
to ensure that the legitimate rights and interests of Nanjing Putian or its subsidiaries and other shareholders of
Nanjing Putian will not be damaged by related party transactions.
3. The Company ensures that the Company will not require or accept Nanjing Putian or its subsidiaries and
branches to give the Company or the enterprises controlled by the Company conditions superior to those for
third parties in any fair market transaction.
4. The Company ensures that it will exercise corresponding rights and assume corresponding obligations in
accordance with the Articles of Association of Nanjing Putian and its subsidiaries, will not leverage the identity
of controlling shareholder/actual controller to seek illegitimate interests, will not illegally transfer funds and
profits of Nanjing Putian or its subsidiaries through related party transactions, and guarantees that it will not
damage the legitimate rights and interests of other shareholders of Nanjing Putian.
5. In case of violation of the above commitment, the Company is willing to bear all liabilities arising therefrom
and fully compensate or make up for all direct or indirect losses caused to Nanjing Putian.
Commitment 8
Commitment made by: China Potevio Information Industry Co., Ltd.; China Potevio Information Industry
Group Co., Ltd.
Contents of commitments
1. During the period when the Company directly or indirectly holds shares of Nanjing Putian
Telecommunications Co., Ltd. (hereinafter referred to as "Nanjing Putian"), it guarantees not to leverage its
control over Nanjing Putian to engage in or participate in acts detrimental to the interests of Nanjing Putian and
its minority shareholders.
2. Except the above-mentioned disclosure, in the future, the Company and enterprises controlled by the
Company will not own, manage, control, invest in, or engage in any other business or project, directly or
indirectly, within or outside the PRC, which is the same or similar to those currently carried out or planned for
the future by Nanjing Putian and its subsidiaries and branches, nor will they seek to directly or indirectly engage
in any business that competes with the current or planned business of Nanjing Putian and its subsidiaries or
Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co., Ltd.
branches through joint venture, cooperation, joint venture with any third party or through any means such as
lease operation, contract operation or entrusted management, nor will they have an interest in the above
activities. If the Company and the enterprises controlled by the Company discover any new business
opportunity that constitutes or may constitute a direct or indirect competition against Nanjing Putian or its
holding enterprises in their main business, they will immediately notify Nanjing Putian in writing and cause the
business opportunity to be first provided to Nanjing Putian or its holding enterprises on reasonable and fair
terms and conditions.
3. If Nanjing Putian or its holding enterprises give up such competitive new business opportunities, and the
Company and the enterprises controlled by the Company engage in these competitive businesses, Nanjing
Putian or its holding enterprises have the right to acquire any equity, assets and other interests in the above
competitive businesses from the above entities for one or more times at any time.
4. When the Company and the enterprises controlled by the Company intend to transfer, sell, lease, license or
otherwise transfer or allow the use of assets and businesses that constitute or may constitute direct or indirect
competition against Nanjing Putian or its holding enterprises in their main business, the Company and the
enterprises controlled by the Company will provide Nanjing Putian or its holding enterprises with the right of
first refusal, and promise to make every effort to urge the enterprises in which the Company holds an equity
stake to provide the right of first refusal to Nanjing Putian or its holding enterprises under the above
circumstances.
5. If the Company violates the above commitment, it shall make comprehensive, timely and full compensation
for the losses suffered by Nanjing Putian; All benefits obtained by the Company due to breach of the above
commitments shall belong to Nanjing Putian.
6. The above commitment shall remain valid during the period when the Company is the controlling
shareholder/actual controller of the Listed Company.
Commitment 9
Commitment made by: China Potevio Information Industry Co., Ltd.; China Potevio Information Industry
Group Co., Ltd.
After the completion of this transaction, the Company will strictly abide by the Company Law, Securities Law,
relevant regulations of China Securities Regulatory Commission, Shenzhen Stock Exchange and the Articles of
Association, etc., and ensure that Nanjing Putian Telecommunications Co., Ltd. (hereinafter referred to as the
"Listed Company") will continue to be completely separated from the Company and the enterprises controlled
or greatly influenced by the Company in terms of personnel, assets, finance, organizations and business, and
maintain the independence of the Listed Company in terms of personnel, assets, finance, organizations and
business. In particular, after the completion of this transaction, the Company will abide by the Notice on Certain
Issues Concerning the Regulation of Financial Transactions between Listed Companies and Related Parties and
External Guarantees by Listed Companies (Z.J.F (2003) No.56) and the Notice of the China Securities
Regulatory Commission and China Banking Regulatory Commission on the Regulation of External Guarantees
by Listed Companies (Z.J.F [2005] No.120) to regulate external guarantees by the Listed Company and its
subsidiaries, and will not illegally occupy funds of the Listed Company and its subsidiaries.
The Company guarantees to strictly fulfill the above commitment. If the rights and interests of the Listed
Company are damaged due to the violation of the above commitment by the Company or the enterprises
controlled or greatly influenced by the Company, the Company will bear corresponding compensation liabilities
according to laws.
Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co., Ltd.
Commitment 10
Commitment made by: Xu Qian; Wang Wenkui; Li Tong; Liu Yun; Wang Jinfeng; Qin Zhen; Tang Fuxin; Xie
Manlin; Du Xiaorong; Jia Haowen; Lei Xu; Liu Xiaodong; Wang Huailin; Li Jing
Contents of commitments
In order to ensure that the Company's measures to fill the diluted immediate return can be effectively
implemented, all directors and senior executives of the Company make the following commitment:
(I) I promise not to transfer benefits to other units or individuals without compensation or on unfair terms, or to
use other means to harm the interests of the Listed Company;
(II) I promise to restrain my job-related consumption behavior;
(III) I promise not to use the Listed Company's assets for investments and consumption unrelated to my duties;
(IV) I promise to do my best, within the scope of my responsibilities and authority, to link the remuneration
system established by the Board of Directors or the Remuneration Committee with the implementation of the
Listed Company's compensation measures to cover losses;
(V) If the Listed Company plans to implement equity incentives in the future, I promise to do my best, within
the scope of my responsibilities and authority, to link the exercise conditions of the equity incentives planned by
the Listed Company with the implementation of the compensation measures;
(VI) From the date of this commitment to the completion of this transaction, if the CSRC issues any new
regulatory provisions regarding compensation measures to cover losses to cover losses and related
commitments, and the above commitments cannot satisfy such provisions of the CSRC, I promise to issue a
supplementary commitment in accordance with the latest regulations of the CSRC;
(VII) I promise to diligently fulfill the Listed Company's established compensation measures to cover losses and
any commitments I have made in relation to these measures; if I violate such commitments and cause losses to
the Listed Company or investors, I am willing to assume legal compensation responsibility to the Listed
Company or investors.
Commitment 11
Commitment made by: China Potevio Information Industry Co., Ltd.; China Potevio Information Industry
Group Co., Ltd.
Contents of commitments
1. The Company promises not to interfere in the operation and management activities of Nanjing Putian
Telecommunications Co., Ltd. (hereinafter referred to as "Nanjing Putian") beyond its authority and not
encroach on interests of Nanjing Putian;
2. From the date of issuance of this commitment to the completion of this transaction, if the CSRC makes clear
provisions on the compensation measures to cover losses and related commitments, and the above commitments
cannot satisfy the provisions of the CSRC, the Company promises to issue supplementary commitments
according to the provisions of the CSRC;
The Company promises to strictly fulfill the above commitments and ensure that the compensation measures to
cover losses can be effectively taken. If the Company violates the above commitments and causes losses to
Nanjing Putian or investors, the Company is willing to bear the compensation responsibility for Nanjing Putian
or investors and the corresponding punishment of the regulatory authorities according to laws.
Commitment 12
Commitment made by: China Potevio Information Industry Co., Ltd.
Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co., Ltd.
Commitment: In view of the fact that Nanjing Putian Telecommunications Co., Ltd. (hereinafter referred to as
"Nanjing Putian") intends to apply to Shenzhen Stock Exchange for resumption of listing, the Company, as the
controlling shareholder of Nanjing Putian, hereby makes the following commitment:
I. Ensure personnel independence of Nanjing Putian
(I) The Company ensures that Nanjing Putian's production, operation and administration (including labor,
personnel and salary management, etc.) are completely independent of the Company and the companies and
enterprises under the Company.
(II) The Company ensures that Nanjing Putian's general manager, deputy general manager, chief financial
officer, secretary of the Board of Directors and other senior executives work full-time in Nanjing Putian and
receive remuneration from Nanjing Putian, and do not concurrently hold other positions other than directors and
supervisors in the Company and the companies and enterprises under the Company, and do not receive
remuneration from the Company and the companies or enterprises under the Company; The Company ensures
that the financial personnel of Nanjing Putian do not work part-time in and receive remuneration from the
Company and the companies and enterprises under the Company.
(III) The Company ensures that it recommends candidates to serve as directors, supervisors and senior
executives of Nanjing Putian through legal procedures, and then it will not interfere with the personnel
appointment and dismissal decisions made by the Board of Directors and Shareholders' Meeting of Nanjing
Putian.
II. Ensure assets independence and integrity of Nanjing Putian
(I) The Company ensures the assets independence and integrity of Nanjing Putian and its subsidiaries, and
ensures that all these assets are under the control of Nanjing Putian and its subsidiaries, and are independently
owned and operated by Nanjing Putian and its subsidiaries.
(II) The Company ensures that the Company and the companies and enterprises under the Company do not
illegally occupy Nanjing Putian's assets, funds and other resources.
III. Ensure business independence of Nanjing Putian
(I) The Company ensures that Nanjing Putian has an independent procurement and sales systems; has the assets,
personnel and qualifications to independently carry out business activities, and has the ability to operate
independently in the market.
(II) The Company ensures that the Company and the companies and enterprises under the Company avoid
horizontal competition against Nanjing Putian and its subsidiaries.
(III) The Company ensures to conduct strict control of related party transactions and minimize continuing
related party transactions between Nanjing Putian and its subsidiaries and the Company and the companies and
enterprises under the Company. The Company puts an end to the illegal occupation of Nanjing Putian's funds
and assets, and will not require Nanjing Putian and its subsidiaries to provide any form of guarantee to the
Company and the companies and enterprises under the Company. For necessary related party transactions, the
Company will follow the principle of "fairness, impartiality and openness", make transaction prices consistent
with those for non-related enterprises, and disclose information in a timely manner.
(IV) The Company ensures not to interfere in major decisions of Nanjing Putian by any means other than
exercising shareholders' rights according to laws, and not to affect the independence of Nanjing Putian's assets,
personnel, finance, organizations and business.
IV. Ensure organizational independence of Nanjing Putian
(I) The Company ensures that Nanjing Putian and its subsidiaries establish and improve their own corporate
Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co., Ltd.
governance structures according to laws, and completely separate from the Company and the companies and
enterprises under the Company; The Company ensures that Nanjing Putian and its subsidiaries are completely
separated from the Company and the companies and enterprises under the Company in terms of offices and
production and business premises, without confusion among their organizations.
(II) The Company ensures that Nanjing Putian and its subsidiaries operate independently, and the Company will
not directly or indirectly interfere in the decision-making and operation of Nanjing Putian without the approval
of the Board of Directors and Shareholders' Meeting of Nanjing Putian.
(III) The Company ensures that the Shareholders' Meeting, Board of Directors, independent directors, Board of
Supervisors and senior executives of Nanjing Putian independently exercise their functions and powers in
accordance with laws, regulations and the Articles of Association.
V. Ensure financial independence of Nanjing Putian
(I) The Company ensures that Nanjing Putian has an independent financial accounting department, an
independent financial accounting system, standardized and independent financial accounting rules and financial
management rules.
(II) The Company ensures that Nanjing Putian remains independent in financial decision-making, and that the
Company and the companies and enterprises under the Company do not interfere in the use and dispatch of
funds of Nanjing Putian.
(III) The Company ensures that Nanjing Putian maintains its own independent bank accounts and does not share
any bank accounts with the Company and the companies and enterprises under the Company.
(IV) Ensure independent tax payment by Nanjing Putian according to laws.
The above commitment shall remain valid and irrevocable during the period when the Company is the
controlling shareholder of Nanjing Putian. In case of violation of the above commitment and thus causing
economic losses to Nanjing Putian, the Company will compensate Nanjing Putian.
Commitment 13
Commitment made by: China Potevio Information Industry Co., Ltd.
Contents of commitments
In view of the fact that Nanjing Putian Telecommunications Co., Ltd. (hereinafter referred to as "Nanjing
Putian") intends to apply to Shenzhen Stock Exchange for resumption of listing, the Company, as the
controlling shareholder of Nanjing Putian, hereby makes the following commitment:
I. The Company will not leverage its identity as Nanjing Putian's controlling shareholder to require Nanjing
Putian and its subsidiaries to give rights superior to those for third parties in the market in business cooperation
or engage in any acts that harm the interests of Nanjing Putian and its subsidiaries in transactions.
II. The Company will not leverage its identity as Nanjing Putian's controlling shareholder to seek priority rights
to conclude transactions with Nanjing Putian and its subsidiaries.
III. When carrying out related party transactions that are really necessary and unavoidable, it ensures that they
are carried out in accordance with the principle of marketization and fair prices, and will strictly comply with
the relevant laws, regulations, normative documents and the relevant provisions of the Articles of Association
of the listed company, perform the transaction procedures and information disclosure obligations, and ensures
that the legitimate rights and interests of Nanjing Putian and other shareholders will not be damaged through
related party transactions.
The above commitment shall remain valid and irrevocable during the period when the Company is the
Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co., Ltd.
controlling shareholder of Nanjing Putian. In case of violation of the above commitment and thus causing
economic losses to Nanjing Putian, the Company will compensate Nanjing Putian.
Commitment 14
Commitment made by: China Potevio Information Industry Co., Ltd.
Commitment: In view of the fact that Nanjing Putian Telecommunications Co., Ltd. (hereinafter referred to as
"Nanjing Putian") intends to apply to Shenzhen Stock Exchange for resumption of listing, the Company, as the
controlling shareholder of Nanjing Putian, hereby makes the following commitment:
I. The Company and the related enterprises controlled by the Company have not engaged in any production and
operation business or activities that directly or indirectly compete against Nanjing Putian, and promise not to
engage in any production and operation business or activities that directly or indirectly compete against Nanjing
Putian in the future.
II. The Company does not own, manage, control, invest or engage in any other businesses or projects that are
the same as or similar to the those of Nanjing Putian.
III. If the Company or its any related enterprise obtains any business opportunity from any third party that
constitutes substantial competition or may constitute substantial competition against Nanjing Putian in its
business, the Company will immediately notify Nanjing Putian and transfer the business opportunity to Nanjing
Putian after obtaining approval from the third party.
IV. The Company will supervise and restrain the production and operation activities of itself and its related
enterprises. If the products or businesses of the Company and its related enterprises are the same as or similar to
those of Nanjing Putian in the future, the Company promises to take the following measures to solve the
problem:
(I) When Nanjing Putian deems it necessary, the Company and its related enterprises will reduce their holdings
until all the relevant assets and businesses held by the Company and its related enterprises are transferred;
(II) Nanjing Putian may, when it deems it necessary, give priority to the acquisition of relevant assets and
businesses held by the Company and its related enterprises through appropriate means;
(III) If the Company and its related enterprises have conflicts of interest with Nanjing Putian due to horizontal
competition, the interests of Nanjing Putian shall be given priority;
(IV) The Company will take other measures conducive to avoiding horizontal competition.
The above commitment shall remain valid and irrevocable during the period when the Company is the
controlling shareholder of Nanjing Putian. In case of violation of the above commitment and thus causing
economic losses to Nanjing Putian, the Company will compensate Nanjing Putian.
Commitment 15
Commitment made by: China Potevio Information Industry Group Corporation
Commitment: In view of the fact that Nanjing Putian Telecommunications Co., Ltd. (hereinafter referred to as
"Nanjing Putian") intends to apply to Shenzhen Stock Exchange for resumption of listing, the Company, as the
actual controller of Nanjing Putian, hereby makes the following commitment:
I. Ensure personnel independence of Nanjing Putian
(I) The Company ensures that Nanjing Putian's production, operation and administration (including labor,
personnel and salary management, etc.) are completely independent of the Company and the companies and
enterprises under the Company.
(II) The Company ensures that Nanjing Putian's general manager, deputy general manager, chief financial
Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co., Ltd.
officer, secretary of the Board of Directors and other senior executives work full-time in Nanjing Putian and
receive remuneration from Nanjing Putian, and do not concurrently hold other positions other than directors and
supervisors in the Company and the companies and enterprises under the Company, and do not receive
remuneration from the Company and the companies or enterprises under the Company; The Company ensures
that the financial personnel of Nanjing Putian do not work part-time in and receive remuneration from the
Company and the companies and enterprises under the Company.
(III) The Company ensures that it recommends candidates to serve as directors, supervisors and senior
executives of Nanjing Putian through legal procedures, and then it will not interfere with the personnel
appointment and dismissal decisions made by the Board of Directors and Shareholders' Meeting of Nanjing
Putian.
II. Ensure assets independence and integrity of Nanjing Putian
(I) The Company ensures the assets independence and integrity of Nanjing Putian and its subsidiaries, and
ensures that all these assets are under the control of Nanjing Putian and its subsidiaries, and are independently
owned and operated by Nanjing Putian and its subsidiaries.
(II) The Company ensures that the Company and the companies and enterprises under the Company do not
illegally occupy Nanjing Putian's assets, funds and other resources.
III. Ensure business independence of Nanjing Putian
(I) The Company ensures that Nanjing Putian has an independent procurement and sales systems; has the assets,
personnel and qualifications to independently carry out business activities, and has the ability to operate
independently in the market.
(II) The Company ensures that the Company and the companies and enterprises under the Company avoid
horizontal competition against Nanjing Putian and its subsidiaries.
(III) The Company ensures to conduct strict control of related party transactions and minimize continuing
related party transactions between Nanjing Putian and its subsidiaries and the Company and the companies and
enterprises under the Company. The Company puts an end to the illegal occupation of Nanjing Putian's funds
and assets, and will not require Nanjing Putian and its subsidiaries to provide any form of guarantee to the
Company and the companies and enterprises under the Company. For necessary related party transactions, the
Company will follow the principle of "fairness, impartiality and openness", make transaction prices consistent
with those for non-related enterprises, and disclose information in a timely manner.
(IV) The Company ensures not to interfere in major decisions of Nanjing Putian by any means other than
exercising shareholders' rights according to laws, and not to affect the independence of Nanjing Putian's assets,
personnel, finance, organizations and business.
IV. Ensure organizational independence of Nanjing Putian
(I) The Company ensures that Nanjing Putian and its subsidiaries establish and improve their own corporate
governance structures according to laws, and completely separate from the Company and the companies and
enterprises under the Company; The Company ensures that Nanjing Putian and its subsidiaries are completely
separated from the Company and the companies and enterprises under the Company in terms of offices and
production and business premises, without confusion among their organizations.
(II) The Company ensures that Nanjing Putian and its subsidiaries operate independently, and the Company will
not directly or indirectly interfere in the decision-making and operation of Nanjing Putian without the approval
of the Board of Directors and Shareholders' Meeting of Nanjing Putian.
(III) The Company ensures that the Shareholders' Meeting, Board of Directors, independent directors, Board of
Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co., Ltd.
Supervisors and senior executives of Nanjing Putian independently exercise their functions and powers in
accordance with laws, regulations and the Articles of Association.
V. Ensure financial independence of Nanjing Putian
(I) The Company ensures that Nanjing Putian has an independent financial accounting department, an
independent financial accounting system, standardized and independent financial accounting rules and financial
management rules.
(II) The Company ensures that Nanjing Putian remains independent in financial decision-making, and that the
Company and the companies and enterprises under the Company do not interfere in the use and dispatch of
funds of Nanjing Putian.
(III) The Company ensures that Nanjing Putian maintains its own independent bank accounts and does not share
any bank accounts with the Company and the companies and enterprises under the Company.
(IV) Ensure independent tax payment by Nanjing Putian according to laws.
The above commitment shall remain valid and irrevocable during the period when the Company is the actual
controller of Nanjing Putian. In case of violation of the above commitment and thus causing economic losses to
Nanjing Putian, the Company will compensate Nanjing Putian.
Commitment 16
Commitment made by: China Potevio Information Industry Group Corporation
Contents of commitments
In view of the fact that Nanjing Putian Telecommunications Co., Ltd. (hereinafter referred to as "Nanjing
Putian") intends to apply to Shenzhen Stock Exchange for resumption of listing, the Company, as the actual
controller of Nanjing Putian, hereby makes the following commitment:
1. The Company will not leverage its identity as Nanjing Putian's actual controller to require Nanjing Putian and
its subsidiaries to give rights superior to those for third parties in the market in business cooperation or engage
in any acts that harm the interests of Nanjing Putian and its subsidiaries in transactions.
2. The Company will not leverage its identity as Nanjing Putian's actual controller to seek priority rights to
conclude transactions with Nanjing Putian and its subsidiaries.
3. When carrying out related party transactions that are really necessary and unavoidable, it ensures that they
are carried out in accordance with the principle of marketization and fair prices, and will strictly comply with
the relevant laws, regulations, normative documents and the relevant provisions of the Articles of Association
of the listed company, perform the transaction procedures and information disclosure obligations, and ensures
that the legitimate rights and interests of Nanjing Putian and other shareholders will not be damaged through
related party transactions.
The above commitment shall remain valid and irrevocable during the period when the Company is the actual
controller of Nanjing Putian. In case of violation of the above commitment and thus causing economic losses to
Nanjing Putian, the Company will compensate Nanjing Putian.
Commitment 17
Commitment made by: China Potevio Information Industry Group Corporation
Commitment: In view of the fact that Nanjing Putian Telecommunications Co., Ltd. (hereinafter referred to as
"Nanjing Putian") intends to apply to Shenzhen Stock Exchange for resumption of listing, the Company, as the
actual controller of Nanjing Putian, hereby makes the following commitment:
1. The Company and the related enterprises controlled by the Company have not engaged in any production and
Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co., Ltd.
operation business or activities that directly or indirectly compete against Nanjing Putian, and promise not to
engage in any production and operation business or activities that directly or indirectly compete against Nanjing
Putian in the future.
2. The Company does not own, manage, control, invest or engage in any other businesses or projects that are the
same as or similar to the those of Nanjing Putian.
3. If the Company or its any related enterprise obtains any business opportunity from any third party that
constitutes substantial competition or may constitute substantial competition against Nanjing Putian in its
business, the Company will immediately notify Nanjing Putian and transfer the business opportunity to Nanjing
Putian after obtaining approval from the third party.
4. The Company will supervise and restrain the production and operation activities of itself and its related
enterprises. If the products or businesses of the Company and its related enterprises are the same as or similar to
those of Nanjing Putian in the future, the Company promises to take the following measures to solve the
problem:
(1) When Nanjing Putian deems it necessary, the Company and its related enterprises will reduce their holdings
until all the relevant assets and businesses held by the Company and its related enterprises are transferred;
(2) Nanjing Putian may, when it deems it necessary, give priority to the acquisition of relevant assets and
businesses held by the Company and its related enterprises through appropriate means;
(3) If the Company and its related enterprises have conflicts of interest with Nanjing Putian due to horizontal
competition, the interests of Nanjing Putian shall be given priority;
(4) The Company will take other measures conducive to avoiding horizontal competition.
The above commitment shall remain valid and irrevocable during the period when the Company is the actual
controller of Nanjing Putian. In case of violation of the above commitment and thus causing economic losses to
Nanjing Putian, the Company will compensate Nanjing Putian.
Commitment 18
Commitment made by: China Potevio Information Industry Group Corporation
Commitment: The Group makes the following statements and commitments regarding the operation and future
development plan of Nanjing Putian’s private network communications business, and the business of the Group
and the enterprises controlled by the Group (except Nanjing Putian and its controlled enterprises):
In order to optimize the internal resource allocation of the Group and give full play to Nanjing Putian's business
capabilities, from 2016, the Group has entrusted Nanjing Putian to produce the private network communications
products that were originally purchased by China Potevio Information Industry Co., Ltd. (hereinafter referred to
as “Potevio Co., Ltd."), a wholly-owned subsidiary of the Group. The Group's private network communications
business was originally a trade-oriented business where products were purchased and sold by Potevio Co., Ltd.
from external suppliers. From 2016, the business has been successfully transformed into an independent
processing and production business. The current business model is as follows: Potevio Co., Ltd. will sign
entrusted production contracts with Nanjing Putian and its subsidiary Southern Telecom after obtaining orders
from customers, and Nanjing Putian will be responsible for production. At present, the customer of Potevio Co.,
Ltd. is Fortune Industrial Corp., and the total annual order amount of existing model products remains above
500 million yuan. It is expected to have a stable demand period of 3 to 5 years.
The Group undertakes to take Nanjing Putian as the operating entity of private network communications
business, including but not limited to:
1. Nanjing Putian is the military-civilian integration industrial base of the Group, and is the only producer of the
Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co., Ltd.
existing multi-network cloud-based data processing communication devices and related military-civilian
integration projects (that is, the private network communications business referred to in this commitment), and
it is exclusive;
2. The Group undertakes to gradually integrate the complete business processes and related resources of the
private network communications business including sales into Nanjing Putian within 3 years; If the relevant
business resources cannot be integrated into Nanjing Putian due to external reasons such as special requirements
of downstream customers on the subject qualifications of direct partners (for example, non-foreign-funded
enterprises), the Group will cooperate with Nanjing Putian to carry out relevant business under the condition of
meeting the requirements of relevant laws and regulations, that is, undertake relevant business in the name of
the Group or its subordinate enterprises, and Nanjing Putian will be responsible for actual operation.
The above commitment shall take effect from the date of signing this commitment, and shall remain valid and
irrevocable during the existence of Nanjing Putian and the period when the Group is recognized as a related
party that is not allowed to engage in business same as or similar to Nanjing Putian’s private network
communications business in accordance with relevant regulations. If the above commitment is proved to be
untrue or not fulfilled, all benefits obtained by the Group due to breach of the commitment shall be owned by
Nanjing Putian, and the Group shall compensate for all direct and indirect losses suffered by Nanjing Putian and
bear corresponding legal liabilities.
3. If there is a profit forecast for the Company's assets or projects, and the reporting period is still in the
profit forecast period, the Company shall explain whether the assets or projects have achieved the
original profit forecast and the reasons therefor.
□Applicable Not applicable
II. Non-operating occupation of funds by controlling shareholders and other related parties
of the Listed Company
□Applicable Not applicable
During the reporting period, there was no non-operating occupation of funds by controlling shareholders and other related parties
of the Listed Company.
III. Illegal external guarantees
□Applicable Not applicable
During the reporting period, the Company had no illegal external guarantees.
IV. Explanation of the Board of Directors on the relevant information of the latest Non-
standard Audit Report
□Applicable Not applicable
Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co., Ltd.
V. Explanations of the Board of Directors, the Board of Supervisors and independent
directors (if any) on the Non-standard Audit Report for the reporting period issued by the
accounting firm
□Applicable Not applicable
VI. Explanation of changes in accounting policies, accounting estimates compared with the
financial report of the previous year or correction of material accounting errors
□Applicable Not applicable
During the reporting period, there was no change in accounting policies, accounting estimates or correction of major accounting
errors.
VII. Explanation of changes in the scope of consolidated statements compared with the
financial report of the previous year
Applicable □Not applicable
The subsidiary Chongqing Puhua Information Technology Co., Ltd. has been liquidated. For the reporting
period, its profits and losses and cash flow from January to September during the liquidation period were
included in the consolidated statements.
The subsidiary Nanjing Putian Network Co., Ltd. has been liquidated. For the reporting period, its profits and
losses and cash flow from January to November during the liquidation period were included in the consolidated
statements.
Its subsidiary Seventh Branch of Nanjing Communication Equipment Factory has been liquidated. For the
reporting period, its profits and losses and cash flow from January to December during the liquidation period
were included in the consolidated statements.
VIII. Appointment and dismissal of accounting firm
Accounting firm currently engaged
WUYIGE Certified Public Accountants LLP (Special General
Name of domestic accounting firm
Partnership)
Remuneration of domestic accounting firm (in 10,000 yuan) 80
Continuous years of audit service of the domestic accounting
2
firm
Name of CPAs of the domestic accounting firm Xu Zongliang, Guo Zhigang
Continuous years of audit service of CPAs of the domestic
1 years, 2 years
accounting firm
Whether to change the accounting firm in the current period
Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co., Ltd.
□Yes No
Engagement of internal control audit accounting firm, financial consultants or sponsors
Applicable □Not applicable
The Company engaged WUYIGE Certified Public Accountants LLP (Special General Partnership) as the
internal control audit institution in 2023, and the internal control audit fee was 200,000 yuan.
IX. Delisting after the disclosure of the annual report
□Applicable Not applicable
X. Matters related to bankruptcy reorganization
□Applicable Not applicable
No bankruptcy reorganization related matters occurred during the reporting period.
XI. Major litigation and arbitration matters
Applicable □Not applicable
Ser Basic Whether an The result Enforcement
Amount Progress of
ial situation of estimated and influence of litigation Date of Disclosure
involved (in litigation
num litigation liability is of litigation (arbitration) disclosure index
10,000 yuan) (arbitration)
ber (arbitration) formed (Arbitration) judgments
Nanjing
Sierte
Technology It has no
Co., Ltd. v. significant Announceme
Nanjing impact on the nt on
Putian The verdict profit of the Accumulated
Execution
1 Telecommun 47.65 No has come Company in April 7, 2023 Litigation
completed
ications Co., into effect the current (Announcem
Ltd.: Case of period or ent No.:
Dispute over after the 2023-010)
Project period
Construction
Contract
Nanjing
Southern
Telecom Co.,
Ltd. v.
Nanjing
2 Leqiu 14.67 No Under trial Pending - April 7, 2023 Ibid
Trading Co.,
Ltd.: Case of
Disputes
over Sales
Contract
Nanjing It has no
Nanman significant
Case
3 Electrical 8.59 No impact on the - April 7, 2023 Ibid
withdrawn
Co., Ltd. v. profit of the
COOEC- Company in
Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co., Ltd.
Fluor Heavy the current
Industries period or
Co., Ltd.: after the
Case of period
Disputes
over Sales
Contract
Nanjing
Sierte
Technology It has no
Co., Ltd. v. significant
Nanjing impact on the
Putian The verdict profit of the
Execution
4 Telecommun 31.89 No has come Company in April 7, 2023 Ibid
completed
ications Co., into effect the current
Ltd.: Case of period or
Dispute over after the
Project period
Construction
Contract
Nanjing
Sierte
Technology It has no
Co., Ltd. v. significant
Nanjing impact on the
Putian Court- profit of the
Execution
5 Telecommun 7.87 No ordered Company in April 7, 2023 Ibid
completed
ications Co., mediation the current
Ltd.: Case of period or
Dispute over after the
Project period
Construction
Contract
Danyang
Jinyang
Hengguang
Communicati It has no
on significant
Equipment impact on the
Co., Ltd. v. Court- profit of the
Execution
6 Nanjing 5.12 No ordered Company in April 7, 2023 Ibid
completed
Putian mediation the current
Telecommun period or
ications Co., after the
Ltd.: Case of period
Disputes
over Sales
Contract
Nanjing It has no
Bowden significant
Intelligent impact on the
Technology profit of the
Case
7 Co., Ltd. v. 13.07 No Company in - April 7, 2023 Ibid
withdrawn
Nanjing the current
Putian period or
Telecommun after the
ications Co., period
Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co., Ltd.
Ltd.: Case of
Disputes
over Sales
Contract
Nanjing
Putian
Telecommun
ications Co.,
Ltd. v. Morin
Dawa Branch
It has no
of China
significant
Broadnet
impact on the
Inner
profit of the
Mongolia Case
8 8.19 No Company in - April 7, 2023 Ibid
Network Co., withdrawn
the current
Ltd., China
period or
Broadnet
after the
Inner
period
Mongolia
Network Co.,
Ltd.: Case of
Disputes
over Sales
Contract
Nanjing
Putian
Telecommun
ications Co.,
Ltd. v. Alxa
Branch of
It has no
China
significant
Broadnet
impact on the
Inner
profit of the
Mongolia Case
9 9.22 No Company in - April 7, 2023 Ibid
Network Co., withdrawn
the current
Ltd., China
period or
Broadnet
after the
Inner
period
Mongolia
Network Co.,
Ltd.: Case of
Disputes
over Sales
Contract
Nanjing
Putian
Telecommun It has no
ications Co., significant
Ltd. v. impact on the
Beijing Luck Court- profit of the
Execution
10 Building 11.72 No ordered Company in April 7, 2023 Ibid
completed
Decoration mediation the current
Engineering period or
Co., Ltd.: after the
Case of period
Disputes
over Sales
Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co., Ltd.
Contract
Jiangning
Xindong
Printing
Announceme
Factory v.
nt on
Nanjing
Accumulated
Putian
11 6.2 No Under trial Pending - June 8, 2023 Litigation
Telecommun
(Announcem
ications Co.,
ent No.:
Ltd.: Case of
2023-026)
Disputes
over Sales
Contract
Nanjing
Sierte
Technology
Co., Ltd. v.
Nanjing
Putian
12 57.92 No Under trial Pending - June 8, 2023 Ibid
Telecommun
ications Co.,
Ltd.: Case of
Disputes
over Sales
Contract
Nanjing
Southern
Telecom Co., It has no
Ltd. v. significant
SENYINT impact on the
Digital The verdict profit of the
13 Medical 9.9 No has come Company in In execution June 8, 2023 Ibid
System into effect the current
(Dalian) Co., period or
Ltd.: Case of after the
Disputes period
over Sales
Contract
Nanjing
Nanman
It has no
Electrical
significant
Co., Ltd. v.
impact on the
Qingdao
Court- profit of the
Yingxuan Execution
14 24.51 No ordered Company in June 8, 2023 Ibid
Technology completed
mediation the current
Co., Ltd.:
period or
Case of
after the
Disputes
period
over Sales
Contract
Nanjing
Putian
Telecommun
15 ications 364.77 No Under trial Pending - June 8, 2023 Ibid
Technology
Co., Ltd. v.
Nanjing
Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co., Ltd.
Putian
Information
Technology
Co., Ltd. and
Nanjing
Putian
Telecommun
ications Co.,
Ltd.: Case of
Disputes
over the
Recovery of
Unpaid
Capital
Contribution
s
Nanjing
Putian
Datang
Information It has no
Electronics significant
Co., Ltd. v. impact on the
In the
Yangzhou profit of the
Judgment
16 Dingxu New 7.35 No Company in - June 8, 2023 Ibid
Announceme
Energy the current
nt
Technology period or
Co., Ltd.: after the
Case of period
Disputes
over Sales
Contract
Nanjing
Keyuesi
System It has no
Integration significant
Co., Ltd. v. impact on the
Nanjing Court- profit of the
Execution
17 Putian 80.43 No ordered Company in June 8, 2023 Ibid
completed
Telecommun mediation the current
ications Co., period or
Ltd.: Case of after the
Disputes period
over Sales
Contract
Cixi Dongdi
Electric
It has no
Appliance
significant
Factory v.
impact on the
Nanjing
profit of the
Putian Case
18 16.25 No Company in - June 8, 2023 Ibid
Telecommun withdrawn
the current
ications Co.,
period or
Ltd.: Case of
after the
Disputes
period
over Sales
Contract
19 Dewei 57.68 No Under trial Pending - June 8, 2023 Ibid
Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co., Ltd.
Communicati
on
Equipment
(Jiangsu)
Co., Ltd. v.
Nanjing
Putian
Telecommun
ications Co.,
Ltd.: Case of
Disputes
over Sales
Contract
Zhu Zhiyang
v. Nanjing
Putian
Telecommun
ications
Technology It has no
Co., Ltd. and significant
Nanjing impact on the
Putian The verdict profit of the
Execution
20 Telecommun 0 No has come Company in June 8, 2023 Ibid
completed
ications Co., into effect the current
Ltd. (the period or
third party): after the
Case of period
Dispute over
Requesting
Change of
Company
Registration
It has no
Shen Lei v.
significant
Nanjing
impact on the
Putian
The verdict profit of the
Telecommun Execution
21 2.5 No has come Company in June 8, 2023 Ibid
ications Co., completed
into effect the current
Ltd.: Case of
period or
Labor
after the
Dispute
period
Nanjing
Qinhuai
Maoye
It has no
Department
significant
Store v.
impact on the
Nanjing
The verdict profit of the
Putian Execution
22 2 No has come Company in June 8, 2023 Ibid
Telecommun completed
into effect the current
ications Co.,
period or
Ltd.: Case of
after the
Dispute over
period
Housing
Lease
Contract
Anhui Hairi Court- It has no
23 400.44 No In execution June 8, 2023 Ibid
Electronic ordered significant
Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co., Ltd.
Co., Ltd. v. mediation impact on the
Nanjing profit of the
Putian Company in
Telecommun the current
ications Co., period or
Ltd.: Case of after the
Disputes period
over Sales
Contract
Nanjing
Huaheng
Electric
It has no
Control
significant Announceme
Equipment
impact on the nt on
Co., Ltd. v.
Court- profit of the Accumulated
Nanjing Execution
24 225.88 No ordered Company in July 27, 2023 Litigation
Putian completed
mediation the current (Announcem
Telecommun
period or ent No.:
ications Co.,
after the 2023-028)
Ltd.: Case of
period
Disputes
over Sales
Contract
Yangzhou
Sancheng
Machinery It has no
Manufacturin significant
g Co., Ltd. v. impact on the
Nanjing Court- profit of the
25 Putian 15.82 No ordered Company in In execution July 27, 2023 Ibid
Telecommun mediation the current
ications Co., period or
Ltd.: Case of after the
Disputes period
over Sales
Contract
Wu Zhifu v.
Nanjing
Putian
Telecommun
26 21.34 No Under trial Pending - July 27, 2023 Ibid
ications Co.,
Ltd.: Case of
Labor
Dispute
Wang Xi v.
Nanjing
Putian
Telecommun
27 19.29 No Under trial Pending - July 27, 2023 Ibid
ications Co.,
Ltd.: Case of
Labor
Dispute
Xia
Haicheng v.
28 Nanjing 22.38 No Under trial Pending - July 27, 2023 Ibid
Putian
Telecommun
Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co., Ltd.
ications Co.,
Ltd.: Case of
Labor
Dispute
Pei Tingrong
v. Nanjing
Putian
Telecommun
29 8.8 No Under trial Pending - July 27, 2023 Ibid
ications Co.,
Ltd.: Case of
Labor
Dispute
Li Yan v.
Nanjing
Putian
Telecommun
30 20.12 No Under trial Pending - July 27, 2023 Ibid
ications Co.,
Ltd.: Case of
Labor
Dispute
Ruan Rui v.
Nanjing
Putian
Telecommun
31 5.04 No Under trial Pending - July 27, 2023 Ibid
ications Co.,
Ltd.: Case of
Labor
Dispute
Ren Minfu v.
Nanjing
Putian
Telecommun
32 9.21 No Under trial Pending - July 27, 2023 Ibid
ications Co.,
Ltd.: Case of
Labor
Dispute
It has no
Gao Wen v.
significant
Nanjing
impact on the
Putian
The verdict profit of the
Telecommun Execution
33 59.18 No has come Company in July 27, 2023 Ibid
ications Co., completed
into effect the current
Ltd.: Case of
period or
Labor
after the
Dispute
period
Shen Lei v.
Nanjing
Putian
Telecommun
34 19.57 No Under trial Pending - July 27, 2023 Ibid
ications Co.,
Ltd.: Case of
Labor
Dispute
Lv Ming v.
Nanjing
35 132.18 No Under trial Pending - July 27, 2023 Ibid
Putian
Telecommun
Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co., Ltd.
ications Co.,
Ltd.: Case of
Labor
Dispute
Zhao Jing v.
Nanjing
Putian
Telecommun
36 12.83 No Under trial Pending - July 27, 2023 Ibid
ications Co.,
Ltd.: Case of
Labor
Dispute
Zhu Jinming
v. Nanjing
Putian
Telecommun
37 21.2 No Under trial Pending - July 27, 2023 Ibid
ications Co.,
Ltd.: Case of
Labor
Dispute
Che Leiting
v. Nanjing
Putian
Telecommun
38 14.71 No Under trial Pending - July 27, 2023 Ibid
ications Co.,
Ltd.: Case of
Labor
Dispute
Wei Jun v.
Nanjing
Putian
Telecommun
39 9.86 No Under trial Pending - July 27, 2023 Ibid
ications Co.,
Ltd.: Case of
Labor
Dispute
Sun Yuanwei
v. Nanjing
Putian
Telecommun
40 16.13 No Under trial Pending - July 27, 2023 Ibid
ications Co.,
Ltd.: Case of
Labor
Dispute
Xue Haining
v. Nanjing
Putian
Telecommun
41 15.31 No Under trial Pending - July 27, 2023 Ibid
ications Co.,
Ltd.: Case of
Labor
Dispute
Yu Yang v.
Nanjing
42 Putian 7.38 No Under trial Pending - July 27, 2023 Ibid
Telecommun
ications Co.,
Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co., Ltd.
Ltd.: Case of
Labor
Dispute
Zhou
Faxiang v.
Nanjing
Putian
43 Telecommun 8.97 No Under trial Pending - July 27, 2023 Ibid
ications Co.,
Ltd.: Case of
Labor
Dispute
Bao
Gencheng v.
Nanjing
Putian
44 Telecommun 18.41 No Under trial Pending - July 27, 2023 Ibid
ications Co.,
Ltd.: Case of
Labor
Dispute
Zhu Houping
v. Nanjing
Putian
Telecommun
45 10.81 No Under trial Pending - July 27, 2023 Ibid
ications Co.,
Ltd.: Case of
Labor
Dispute
Li Jia v.
Nanjing
Putian
Telecommun
46 7.07 No Under trial Pending - July 27, 2023 Ibid
ications Co.,
Ltd.: Case of
Labor
Dispute
Ge Suqing v.
Nanjing
Putian
Telecommun
47 17.54 No Under trial Pending - July 27, 2023 Ibid
ications Co.,
Ltd.: Case of
Labor
Dispute
Fan
Ningsheng v.
Nanjing
Putian
48 Telecommun 16.98 No Under trial Pending - July 27, 2023 Ibid
ications Co.,
Ltd.: Case of
Labor
Dispute
Nanjing The verdict It has no
Execution
49 Putian 13.83 No has come significant July 27, 2023 Ibid
completed
Telege into effect impact on the
Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co., Ltd.
Intelligent profit of the
Building Ltd. Company in
v. The the current
Second period or
Construction after the
Limited period
Company of
China
Construction
Eighth
Engineering
Division
Corp., Ltd.:
Case of
Disputes
over Sales
Contract
Nanjing
Putian
Telege
Intelligent
Building Ltd.
v. The
It has no
Second
significant
Construction
impact on the
Limited
The verdict profit of the
Company of Execution
50 51.83 No has come Company in July 27, 2023 Ibid
China completed
into effect the current
Construction
period or
Eighth
after the
Engineering
period
Division
Corp., Ltd.:
Case of
Disputes
over Sales
Contract
Hebei
Wonder
Cabinets It has no
Manufacturin significant
g Co., Ltd. v. impact on the
Nanjing Court- profit of the
51 Putian 163.86 No ordered Company in In execution July 27, 2023 Ibid
Telecommun mediation the current
ications Co., period or
Ltd.: Case of after the
Disputes period
over Sales
Contract
Hebei It has no
Donghe significant
Communicati The verdict impact on the
52 on 216.25 No has come profit of the In execution July 25, 2023 Ibid
Equipment into effect Company in
Co., Ltd. v. the current
Nanjing period or
Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co., Ltd.
Putian after the
Telecommun period
ications Co.,
Ltd.: Case of
Disputes
over Sales
Contract
Other
litigation that
did not meet
the
53 disclosure 862.06 No - - - -
criteria
during the
reporting
period
XII. Punishment and rectification
□Applicable Not applicable
During the reporting period, the Company was not subject to any punishment or rectification.
XIII. Credit status of the Company, its controlling shareholders and actual controllers
□Applicable Not applicable
XIV. Major related party transactions
1. Related party transactions related to daily operations
Applicable □Not applicable
Amou
Pricin nt of Propo Appro Settle Avail
Whet
Type Conte g Price relate rtion ved ment able
her it
of nt of princi of d to the transa metho marke
excee Date
Relate relate relate ple of relate party amou ction d of t price Disclo
Relati ded of
d d d relate d transa nt of quota relate of sure
on the disclo
party party party d party ction simila (in d simila index
appro sure
transa transa party transa (in r 10,00 party r
ved
ction ction transa ction 10,00 transa 0 transa transa
quota
ction 0 ctions yuan) ction ctions
yuan)
CIE Anno
(Nanji Contr Purch unce
ng) olled asing ment
Telec
Electr by the goods on
ommu
onic same and Bank April Expec
nicati Marke 183.3 183.3 183.3
Infor ultima receiv 0.30% 6,000 No transf 7, ted
ons t price 1 1 1
matio te ing er 2023 Routi
produ
n contro labor ne
cts
Devel lling servic Relate
opme party es d
nt Party
Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co., Ltd.
Co., Trans
Ltd. action
Nanji s in
Contr Purch
ng 2023
olled asing
Hikvi Telec releas
by the goods
sion ommu ed on
same and Bank April
Digita nicati Marke CNIN
ultima receiv 8.42 8.42 0.01% No transf 8.42 7,
l ons t price FO
te ing er 2023
Techn produ
contro labor
ology cts
lling servic
Co.,
party es
Ltd.
Hangz
Contr Purch
hou
olled asing
Hikvi Telec
by the goods
sion ommu
same and Bank April
Techn nicati Marke
ultima receiv 6.19 6.19 0.01% No transf 6.19 7,
ology ons t price
te ing er 2023
Co., produ
contro labor
Ltd. cts
lling servic
(CET
party es
C)
Nanji
ng
Contr Purch
Potevi
olled asing
o Telec
by the goods
Hony ommu
same and Bank April
ar nicati Marke
ultima receiv 32.05 32.05 0.05% No transf 32.05 7,
Electr ons t price
te ing er 2023
ical produ
contro labor
Techn cts
lling servic
ology
party es
Co.,
Ltd.
Nanji
Contr Sellin
ng
olled g
LES Telec
by the goods
Infor ommu
same and Bank April
matio nicati Marke 1,125. 1,125. 1,125.
ultima provid 1.37% No transf 7,
n ons t price 07 07 07
te ing er 2023
Techn produ
contro labor
ology cts
lling servic
Co.,
party es
Ltd.
Contr Sellin
10,00
The olled g Ibid
Telec 0
14th by the goods
ommu
Resea same and Bank April
nicati Marke 957.1 957.1 957.1
rch ultima provid 1.17% No transf 7,
ons t price 8 8 8
Institu te ing er 2023
produ
te of contro labor
cts
CETC lling servic
party es
The Contr Sellin Telec
Bank April
28th olled g ommu Marke 498.4 498.4 498.4
0.61% No transf 7,
Resea by the goods nicati t price 3 3 3
er 2023
rch same and ons
Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co., Ltd.
Institu ultima provid produ
te of te ing cts
China contro labor
Electr lling servic
onics party es
Techn
ology
Group
Corpo
ration
Nanji
Contr Sellin
ng
olled g
Glaru Telec
by the goods
n ommu
same and Bank April
Defen nicati Marke 371.7 371.7 371.7
ultima provid 0.45% No transf 7,
se ons t price 4 4 4
te ing er 2023
Syste produ
contro labor
m cts
lling servic
Co.,
party es
Ltd.
Contr Sellin
Nanji
olled g
ng Telec
by the goods
Glawa ommu
same and Bank April
y nicati Marke 330.1 330.1 330.1
ultima provid 0.40% No transf 7,
Softw ons t price 9 9 9
te ing er 2023
are produ
contro labor
Co., cts
lling servic
Ltd.
party es
Nanji
ng Contr Sellin
Rail olled g
Telec
Transi by the goods
ommu
t same and Bank April
nicati Marke 175.6 175.6 175.6
Syste ultima provid 0.21% No transf 7,
ons t price 3 3 3
m te ing er 2023
produ
Engin contro labor
cts
eering lling servic
Co., party es
Ltd.
Tianb
o Contr Sellin
Electr olled g
Telec
onic by the goods
ommu
Infor same and Bank April
nicati Marke 169.3 169.3 169.3
matio ultima provid 0.21% No transf 7,
ons t price 5 5 5
n te ing er 2023
produ
Techn contro labor
cts
ology lling servic
Co., party es
Ltd.
Contr Sellin
Nanji
olled g
ng Labor Bank April
by the goods Marke 107.5 107.5 107.5
Lopu servic 0.13% No transf 7,
same and t price 0 0 0
Co., e cost er 2023
ultima provid
Ltd.
te ing
Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co., Ltd.
contro labor
lling servic
party es
CETC Contr Sellin
Potevi olled g
Telec
o by the goods
ommu
Scien same and Bank April
nicati Marke 124.2 124.2 124.2
ce & ultima provid 0.15% No transf 7,
ons t price 7 7 7
Techn te ing er 2023
produ
ology contro labor
cts
Co., lling servic
Ltd. party es
Hebei
Far-
Contr Sellin
east
olled g
Com Telec
by the goods
munic ommu
same and Bank April
ation nicati Marke 123.4 123.4 123.4
ultima provid 0.15% No transf 7,
Syste ons t price 4 4 4
te ing er 2023
m produ
contro labor
Engin cts
lling servic
eering
party es
Co.,
Ltd.
CETC
Taili
Contr Sellin
Telec
olled g
ommu Telec
by the goods
nicati ommu
same and Bank April
ons nicati Marke
ultima provid 39.68 39.68 0.05% No transf 39.68 7,
Techn ons t price
te ing er 2023
ology produ
contro labor
Co., cts
lling servic
Ltd.
party es
(CET
C)
Contr Sellin
Taiji olled g
Telec
Comp by the goods
ommu
uter same and Bank April
nicati Marke
Corpo ultima provid 29.25 29.25 0.04% No transf 29.25 7,
ons t price
ration te ing er 2023
produ
Limit contro labor
cts
ed lling servic
party es
Putian
Contr Sellin
Rail
olled g
Transi Telec
by the goods
t ommu
same and Bank April
Techn nicati Marke
ultima provid 27.04 27.04 0.03% No transf 27.04 7,
ology ons t price
te ing er 2023
(Shan produ
contro labor
ghai) cts
lling servic
Co.,
party es
Ltd.
The Contr Sellin Telec Marke Bank April
25.23 25.23 0.03% No 25.23
7th olled g ommu t price transf 7,
Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co., Ltd.
Resea by the goods nicati er 2023
rch same and ons
Institu ultima provid produ
te of te ing cts
CETC contro labor
lling servic
party es
Contr Sellin
Nanji olled g
Telec
ng by the goods
ommu
Lopu same and Bank April
nicati Marke
Techn ultima provid 17.59 17.59 0.02% No transf 17.59 7,
ons t price
ology te ing er 2023
produ
Co., contro labor
cts
Ltd. lling servic
party es
Contr Sellin
olled g
Telec
by the goods
Magni ommu
same and Bank April
chip nicati Marke
ultima provid 17.35 17.35 0.02% No transf 17.35 7,
Co., ons t price
te ing er 2023
Ltd. produ
contro labor
cts
lling servic
party es
Contr Sellin
olled g
CETC Telec
by the goods
Eastc ommu
same and Bank April
om nicati Marke
ultima provid 8.10 8.1 0.01% No transf 8.10 7,
Group ons t price
te ing er 2023
Co., produ
contro labor
Ltd. cts
lling servic
party es
Easter
Contr Sellin
n
olled g
Com Telec
by the goods
munic ommu
same and Bank April
ations nicati Marke
ultima provid 7.46 7.46 0.01% No transf 7.46 7,
Co., ons t price
te ing er 2023
Ltd. produ
contro labor
(Head cts
lling servic
quarte
party es
r)
Liyan
g
Syste Contr Sellin
m olled g
Telec
Equip by the goods
ommu
ment same and Bank April
nicati Marke
Co., ultima provid 6.86 6.86 0.01% No transf 6.86 7,
ons t price
Ltd. te ing er 2023
produ
of the contro labor
cts
28th lling servic
Resea party es
rch
Institu
Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co., Ltd.
te
Zhong
kexin Contr Sellin
Integr olled g
ated by the goods
Circui same and Bank April
Marke
t Co., ultima provid OEM 1.34 1.34 0.00% No transf 1.34 7,
t price
Ltd. te ing er 2023
Nanji contro labor
ng lling servic
Branc party es
h
CIE
(Nanji
ng) Contr Sellin
Electr olled g
Telec
onic by the goods
ommu
Infor same and Bank April
nicati Marke
matio ultima provid 1.06 1.06 0.00% No transf 1.06 7,
ons t price
n te ing er 2023
produ
Devel contro labor
cts
opme lling servic
nt party es
Co.,
Ltd.
Contr
Rent
Potevi olled
and
o Hi- by the
Renti proper
tech same Bank April
ng ty Marke 100.0
Indust ultima 64.09 64.09 100 No transf 64.09 7, Ibid
proper mana t price 0%
ry te er 2023
ty geme
Co., contro
nt
Ltd. lling
fees
party
Contr
olled
Nanji by the
Leasi
ng same Bank April
ng Marke
Lopu ultima Rent 39.52 39.52 4.70% No transf 39.52 7,
proper t price
Co., te er 2023
ty
Ltd. contro
lling
party
300 Ibid
Contr
The olled
14th by the
Leasi
Resea same Bank April
ng Marke 118.1 118.1 14.05 118.1
rch ultima Rent No transf 7,
proper t price 2 2 % 2
Institu te er 2023
ty
te of contro
CETC lling
party
China Contr Intere
Potevi olled st on Intere Bank April
Marke 453.5 453.5 46.38 453.5
o by the entrus st on 650 No transf 7, Ibid
t price 9 9 % 9
Infor same ted loan er 2023
matio ultima loan
Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co., Ltd.
n te
Indust contro
ry lling
Co., party
Ltd.
Contr
olled
CETC
by the Intere
Glaru
same st on Intere Bank April
n Marke 188.1 188.1 19.24 188.1
ultima guara st on 350 No transf 7, Ibid
Group t price 8 8 % 8
te nteed loan er 2023
Co.,
contro loan
Ltd.
lling
party
5,257 17,40
Total -- -- -- -- -- -- -- --
.23 0
Details of return of large sales Not applicable
The Company estimated that the total amount of routine related party transactions in 2023
did not exceed 174 million yuan. The total amount of routine related party transactions
Actual performance during the
actually occurred during the reporting period was 52.5723million yuan, including 2.2997
reporting period (if any) for
million yuan for products and labor services purchased from related parties, 41.6376million
expected routine related party
yuan for products and services provided to related parties, rental income of 1.5764 million
transactions during the period with
yuan, rent and property management fee payments of 0.6409 million yuan, 4.5359 million
estimated total amount by category
yuan for interest payments on entrusted loans, and 1.8818 million yuan for interest
payments on guaranteed loans, staying within the estimated total amount.
Reasons for the large difference
between the transaction price and
Not applicable
the market reference price (if
applicable)
2. Related party transactions arising from the acquisition or sale of assets or equity
□Applicable Not applicable
During the reporting period, there were no related party transactions of assets or equity acquisition or sale.
3. Related party transactions involving joint external investment
□Applicable Not applicable
During the reporting period, there were no related party transactions involving joint external investment
4. Related credits and debts
Applicable □Not applicable
Whether there were non-operating related party transactions involving creditor's rights and debts
□Yes No
During the reporting period, there was no non-operating related party transactions involving creditor's rights and debts
5. Transactions with finance companies as related parties of the Company
Applicable □Not applicable
Deposit business
Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co., Ltd.
Amount in the current period
Maximum Total
Range of Opening Total deposit Closing
Related daily deposit withdrawal
Relation Deposit balance (in amount in balance (in
parties limit (in amount in
interest rate 10,000 yuan) the current 10,000 yuan)
10,000 yuan) the current
period (in
period (in
10,000 yuan)
10,000 yuan)
Other
CETC enterprises
Finance Co., controlled by 62,397.3 0.2% 2407.44 107,075.93 110,266.73 5,309.89
Ltd. the actual
controller
Loan business
Amount in the current period
Total
Loan amount Range of Opening Total loan Closing
Related repayment
Relation (in 10,000 loan interest balance (in amount in balance (in
parties amount in
yuan) rate 10,000 yuan) the current 10,000 yuan)
the current
period (in
period (in
10,000 yuan)
10,000 yuan)
Other
CETC enterprises
Finance Co., controlled by 5,500 3.8% 0 5,500 5,500
Ltd. the actual
controller
CETC CETC
Finance Co., Finance Co., 1,500 3.75% 0 1,500 1,500
Ltd. Ltd.
Credit granting or other financial business
Total amount (in Actual amount incurred
Related parties Relation Business type
10,000 yuan) (in 10,000 yuan)
Other enterprises
CETC Finance Co.,
controlled by the actual Credit granting 7,000 7,000
Ltd.
controller
6. Transactions between the financial company controlled by the Company and related parties
□Applicable Not applicable
There was no deposit, loan, credit or other financial business between the financial company controlled by the Company and its
related parties.
7. Other major related party transactions
□Applicable Not applicable
There were no other major related party transactions during the reporting period.
Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co., Ltd.
XV. Major contracts and their performance
1. Trusteeship, contracting and leasing
(1) Trusteeship
□Applicable Not applicable
There was no trusteeship during the reporting period.
(2) Contracting
□Applicable Not applicable
There was no contracting during the reporting period.
(3) Leasing
Applicable □Not applicable
Description of leasing
During the reporting period, the Company and its subsidiaries incurred rental expenses of 640,900 yuan and
rental revenue of 8,954,500 yuan.
Items that brought profit or loss to the Company amounting to more than 10% of the total profit of the Company in the reporting
period
Applicable Not applicable
Amount
Impact
involved Lease Basis for
of lease Related
in leased income lease
Name of Name of Leased Lease Lease income party
assets (in income Relation
lessor lessee assets start date end date on the transacti
(in 10,000 determin
Compan on or not
10,000 yuan) ation
y
yuan)
Nanjing
Putian
Individu Real
Telecom June 1, August Contract Increase
al estate 13.58 17.96 No -
municati 2022 31, 2027 signing profits
customer leasing
ons Co.,
Ltd.
Nanjing
Nanjing
TOPPE
Putian
AK Real Decemb
Telecom January Contract Increase
Culture estate 7.82 er 31, 23.81 No -
municati 1, 2023 signing profits
Commu leasing 2027
ons Co.,
nication
Ltd.
Co., Ltd.
Under
Nanjing
the
Putian The 14th
Real Decemb control
Telecom Research March 1, Contract Increase
estate 264.86 er 31, 34.55 Yes of the
municati Institute 2023 signing profits
leasing 2027 actual
ons Co., of CETC
controlle
Ltd.
r
Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co., Ltd.
Under
Nanjing
the
Putian The 14th
Real Decemb control
Telecom Research May 1, Contract Increase
estate 601.20 er 31, 72.97 Yes of the
municati Institute 2023 signing profits
leasing 2027 actual
ons Co., of CETC
controlle
Ltd.
r
Under
Nanjing
the
Putian The 14th
Real Novemb Novemb control
Telecom Research Contract Increase
estate 116.40 er 10, er 9, 10.60 Yes of the
municati Institute signing profits
leasing 2023 2024 actual
ons Co., of CETC
controlle
Ltd.
r
Nanjing
Nanjing
Putian
Innoflow
Telege Real
Industry January January Contract Increase
Intellige estate 54.52 73.35 No -
and 20, 2020 19, 2025 signing profits
nt leasing
Trade
Building
Co., Ltd.
Ltd.
Nanjing
Nanjing
Putian
Huahao
Telege Real Novemb Novemb
Building Contract Increase
Intellige estate 25.29 er 16, er 15, 32.41 No -
Technol signing profits
nt leasing 2021 2024
ogy Co.,
Building
Ltd.
Ltd.
Under
the
Nanjing
Nanjing Real Decemb control
Southern January Contract Increase
Lopu estate 15.06 er 31, 39.52 Yes of the
Telecom 1, 2021 signing profits
Co., Ltd. leasing 2023 actual
Co., Ltd.
controlle
r
Nanjing
Nanjing
Infy
Nanman Real Septemb
Power 1,285.2 August Contract Increase
Electrica estate er 1, 304.76 No -
Technol 1 31, 2025 signing profits
l Co., leasing 2022
ogy Co.,
Ltd.
Ltd.
Nanjing
Putian
Changle
Individu Real Decemb Novemb
Commu Contract Increase
al estate 2.90 er 1, er 30, 18.35 No -
nication signing profits
customer leasing 2022 2023
Equipme
nt Co.,
Ltd.
Nanjing Nanjing
Putian Puloume
Changle ng
Real Novemb
Commu Intellige October Contract Increase
estate 1.97 er 1, 12.69 No -
nication nt 30, 2024 signing profits
leasing 2021
Equipme Technol
nt Co., ogy Co.,
Ltd. Ltd.
Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co., Ltd.
Nanjing
Nanjing
Putian
Pianfeng
Changle
Screen Real
Commu May 18, May 17, Contract Increase
Culture estate 3.02 27.76 No -
nication 2023 2025 signing profits
Commu leasing
Equipme
nication
nt Co.,
Co., Ltd.
Ltd.
Nanjing
Putian
Nanjing
Changle
Zhongni Real
Commu May 20, July 20, Contract Increase
ngda estate 3.45 36.70 No -
nication 2023 2026 signing profits
Logistics leasing
Equipme
Co., Ltd.
nt Co.,
Ltd.
Nanjing Nanjing
Putian Jinhong
Changle Huijian
Real Septemb
Commu Decorati August Contract Increase
estate 2.89 er 1, 9.17 No -
nication on 31, 2029 signing profits
leasing 2023
Equipme Engineer
nt Co., ing Co.,
Ltd. Ltd.
Nanjing
Putian
Nanjing
Datang
Lerun Real
Informat October October Contract Increase
Instrume estate 42.44 25.92 No -
ion 8, 2019 7, 2029 signing profits
nt Co., leasing
Electroni
Ltd.
cs Co.,
Ltd.
Nanjing
Nanjing
Putian
Aideng
Datang
Electroni Real
Informat May 18, May 17, Contract Increase
c estate 42.44 23.08 No -
ion 2017 2023 signing profits
Technol leasing
Electroni
ogy Co.,
cs Co.,
Ltd.
Ltd.
Nanjing
Nanjing
Putian
Yihe
Datang
Electroni Real
Informat March 1, February Contract Increase
c estate 32.33 31.77 No -
ion 2021 28, 2026 signing profits
Technol leasing
Electroni
ogy Co.,
cs Co.,
Ltd.
Ltd.
Nanjing
Putian Nanjing
Datang Yihe
Real
Informat Software March 1, February Contract Increase
estate 64.67 31.77 No -
ion Technol 2021 28, 2026 signing profits
leasing
Electroni ogy Co.,
cs Co., Ltd.
Ltd.
Nanjing Nanjing Real 27.79 April 1, March 15.43 Contract Increase No -
Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co., Ltd.
Putian Nanda estate 2023 30, 2028 signing profits
Datang Digital leasing
Informat Technol
ion ogy Co.,
Electroni Ltd.
cs Co.,
Ltd.
Nanjing
Nanjing
Putian
Dunhua
Datang
Electroni Real
Informat June 1, May 31, Contract Increase
c estate 42.44 10.08 No -
ion 2021 2023 signing profits
Technol leasing
Electroni
ogy Co.,
cs Co.,
Ltd.
Ltd.
Nanjing
Under
Putian Land
the
Potevio Changle rent and
Decemb control
Hi-tech Commu property January Contract Costs
/ er 31, 64.09 Yes of the
Industry nication manage 1, 2023 signing expenses
2023 actual
Co., Ltd. Equipme ment
controlle
nt Co., fees
r
Ltd.
2. Material guarantees
□Applicable Not applicable
There was no material guarantee during the reporting period.
-
3. Delegation of cash asset management to others
(1) Entrusted wealth management
□Applicable Not applicable
There was no entrusted wealth management during the reporting period.
(2) Entrusted loans
□Applicable Not applicable
There was no entrusted loan during the reporting period.
4. Other major contracts
□Applicable Not applicable
There was no other major contract during the reporting period.
XVI. Explanations of other major matters
Applicable □Not applicable
Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co., Ltd.
Date of Related query index of the information
Matter
disclosure disclosure website
Announcement on Changing the Designated January 17,
CNINFO (www.cninfo.com.cn)
Information Disclosure Media 2023
January 20,
Annual Performance Forecast for 2022 CNINFO (www.cninfo.com.cn)
2023
Announcement on Independent Directors Obtaining February 4,
CNINFO (www.cninfo.com.cn)
Independent Director Qualification Certificates 2023
Announcement on the Resignation of the Vice February 15,
CNINFO (www.cninfo.com.cn)
Chairman of the Board of Directors 2023
Announcement of the Resolutions of the 4th Meeting February 17,
CNINFO (www.cninfo.com.cn)
of the 8th Board of Directors 2023
Notice on Convening the 1st Extraordinary General February 17,
CNINFO (www.cninfo.com.cn)
Meeting of Shareholders in 2023 2023
Announcement of the Resolutions of the 1st
Extraordinary General Meeting of Shareholders in March 7, 2023 CNINFO (www.cninfo.com.cn)
2023
Announcement of the Resolutions of the 5th Meeting
April 7, 2023 CNINFO (www.cninfo.com.cn)
of the 8th Board of Directors
Announcement on Expected Routine Related Party
April 7, 2023 CNINFO (www.cninfo.com.cn)
Transactions in 2023
Announcement on Accumulated Litigation April 7, 2023 CNINFO (www.cninfo.com.cn)
Announcement on the Completion of the Transfer of
April 19, 2023 CNINFO (www.cninfo.com.cn)
the Company’s State-Owned Legal Person Shares
Announcement of the Resolutions of the 6th Meeting
April 20, 2023 CNINFO (www.cninfo.com.cn)
of the 8th Board of Directors
Announcement of the Resolutions of the 3rd Meeting
April 20, 2023 CNINFO (www.cninfo.com.cn)
of the 8th Board of Supervisors
Summary of the Annual Report 2022 April 20, 2023 CNINFO (www.cninfo.com.cn)
Announcement on Provision for Impairment of
April 20, 2023 CNINFO (www.cninfo.com.cn)
Assets in 2022
Announcement on Expected Continuous Related
Party Transactions with CETC Finance Co., Ltd. in April 20, 2023 CNINFO (www.cninfo.com.cn)
2023
Announcement on Engaging an Accounting Firm April 20, 2023 CNINFO (www.cninfo.com.cn)
Notice on Convening the 2022 Annual General
April 20, 2023 CNINFO (www.cninfo.com.cn)
Meeting of Shareholders
Announcement on Completing Transfer Registration
for Free Transfer of State-owned Shares and April 20, 2023 CNINFO (www.cninfo.com.cn)
Changing Controlling Shareholder
Report for the First Quarter of 2023 April 29, 2023 CNINFO (www.cninfo.com.cn)
Announcement of the Resolutions of the 7th Meeting
April 29, 2023 CNINFO (www.cninfo.com.cn)
of the 8th Board of Directors
Announcement on Response to Shenzhen Stock
May 26, 2023 CNINFO (www.cninfo.com.cn)
Exchange Annual Report Inquiry Letter
Announcement of Resolution of 2022 Annual
May 27, 2023 CNINFO (www.cninfo.com.cn)
General Meeting of Shareholders
Announcement on Convening the 2022 Online
May 30, 2023 CNINFO (www.cninfo.com.cn)
Performance Briefing
Record Form of Investor Relations Activities June 7, 2023 CNINFO (www.cninfo.com.cn)
Announcement on Accumulated Litigation June 8, 2023 CNINFO (www.cninfo.com.cn)
Semi-annual Performance Forecast for 2023 July 15, 2023 CNINFO (www.cninfo.com.cn)
Announcement on Accumulated Litigation July 27, 2023 CNINFO (www.cninfo.com.cn)
Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co., Ltd.
Announcement of the Resolutions of the 8th Meeting
July 27, 2023 CNINFO (www.cninfo.com.cn)
of the 8th Board of Directors
Summary of the Semi-annual Report for 2023 August 29, 2023 CNINFO (www.cninfo.com.cn)
Announcement of the Resolutions of the 9th Meeting
August 29, 2023 CNINFO (www.cninfo.com.cn)
of the 8th Board of Directors
Announcement of the Resolutions of the 5th Meeting
August 29, 2023 CNINFO (www.cninfo.com.cn)
of the 8th Board of Supervisors
Announcement on the Liquidation and Closure of a
August 29, 2023 CNINFO (www.cninfo.com.cn)
Subsidiary
Announcement of the Resolutions of the 10th September 21,
CNINFO (www.cninfo.com.cn)
Meeting of the 8th Board of Directors 2023
Announcement on the Liquidation and Dissolution of September 21,
CNINFO (www.cninfo.com.cn)
a Subsidiary 2023
Progress Announcement on the Liquidation and September 27,
CNINFO (www.cninfo.com.cn)
Dissolution of a Subsidiary 2023
October 31,
Report for the third quarter of 2023 CNINFO (www.cninfo.com.cn)
2023
Progress Announcement on the Liquidation and November 30,
CNINFO (www.cninfo.com.cn)
Dissolution of a Subsidiary 2023
Announcement of the Resolutions of the 12th December 7,
CNINFO (www.cninfo.com.cn)
Meeting of the 8th Board of Directors 2023
Announcement on Liquidation and Dissolution of a December 7,
CNINFO (www.cninfo.com.cn)
Tertiary Subsidiary 2023
Progress Announcement on the Liquidation and December 28,
CNINFO (www.cninfo.com.cn)
Dissolution of a Tertiary Subsidiary 2023
XVII. Major issues of the Company's subsidiaries
□Applicable Not applicable
Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co., Ltd.
Section VII Changes in Shares and Shareholders
I. Changes in shares
1. Changes in shares
Unit: share
Before the change Increase or decrease (+, -) in this change After the change
Conversio
Issue of n of
Proportio Share Proportio
Quantity new provident Others Subtotal Quantity
n offering n
shares fund into
shares
I.
Unlisted 115,000,0 115,000,0
53.49% 53.49%
tradable 00 00
shares
1. Shares
115,000,0 115,000,0
of 53.49% 53.49%
00 00
founders
Where:
Shares 115,000,0 115,000,0
53.49% 53.49%
held by 00 00
the state
Shares
held by
domestic
legal
persons
Shares
held by
overseas
legal
persons
Others
2. Shares
held by
legal
persons
3. Shares
held by
employee
s
4.
Preferred
shares or
other
II. Listed 100,000,0 100,000,0
46.51% 46.51%
tradable 00 00
Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co., Ltd.
shares
1.
Ordinary
shares in
Renminbi
2. Foreign
shares 100,000,0 100,000,0
46.51% 46.51%
listed in 00 00
China
3. Foreign
shares
listed
overseas
4. Others
III. Total
215,000,0 215,000,0
number of 100.00% 100.00%
00 00
shares
Reasons for changes in shares
□Applicable Not applicable
Approval of share changes
□Applicable Not applicable
Transfer of shares
□Applicable Not applicable
Effect of share changes on financial indicators such as basic and diluted earnings per share and net assets per share attributable to
ordinary shareholders of the Company for the most recent year and the most recent period
□Applicable Not applicable
Other contents that the Company deems necessary to be disclosed or required to be disclosed by the securities regulatory authority
□Applicable Not applicable
2. Changes in restricted shares
□Applicable Not applicable
II. Issuance and listing of securities
1. Securities issuance (excluding preferred shares) during the reporting period
□Applicable Not applicable
2. Changes in the total number of shares and shareholder structure of the Company, and changes in the
structure of assets and liabilities of the Company
□Applicable Not applicable
3. Existing shares held by employees
□Applicable Not applicable
Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co., Ltd.
III. Shareholders and actual controllers
1. Number and shareholding of shareholders of the Company
Unit: share
Total
Total number of
number of preferred
Total ordinary shareholder
Total number of preferred
number of shareholder s whose
shareholders whose voting
common s at the end voting
rights were restored at the
shareholder of last rights were
7,650 7,657 0 end of the previous month 0
s at the end month restored at
before the disclosure date
of the before the the end of
of the annual report (if
reporting disclosure the
any) (see Note 8)
period date of the reporting
annual period (if
report any) (see
Note 8)
Shareholders holding more than 5% of the shares or the top 10 shareholders' shareholdings (excluding shares lent through
refinancing)
Number of Pledge, marking or
Increase or
shares held Number of Number of freezing
decrease
Shareholde Type of Shareholdi at the end unlisted listed and
during the
r name shareholder ng ratio of the tradable tradable Shares
reporting Quantity
reporting shares held shares held status
period
period
CETC State-
Glarun owned 115,000,00 115,000,00 Not
53.49% 0 0 0
Group Co., legal 0 0 applicable
Ltd. person
Shenwan
Overseas
Hongyuan 5,476,788.0 5,476,788.0 Not
legal 2.55% 874,688.00 0 0
Securities 0 0 applicable
person
(H.K.) Ltd.
Natural
3,104,600.0 2,319,200.0 3,104,600.0 Not
He Wei person in 1.44% 0 0
0 0 0 applicable
China
GUOTAI
JUNAN
Overseas
SECURITI 2,747,797.0 2,747,797.0 Not
legal 1.28% 195,339.00 0 0
ES (HONG 0 0 applicable
person
KONG)
LIMITED
Natural
Zheng 2,449,739.0 2,449,739.0 Not
person in 1.14% 0.00 0 0
Enyue 0 0 applicable
China
Natural
Sun 2,022,200.0 2,022,200.0 Not
person in 0.94% -57,800.00 0 0
Huiming 0 0 applicable
China
Natural
1,871,371.0 1,871,371.0 Not
Gu Jinhua person in 0.87% 0.00 0 0
0 0 applicable
China
Li Natural 0.54% 1,168,820.0 848,520.00 0 1,168,820.0 Not 0
Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co., Ltd.
Mingling person in 0 0 applicable
China
Natural
Zhen 1,010,900.0 1,010,900.0 Not
person in 0.47% 8,600.00 0 0
Hongquan 0 0 applicable
China
Natural
Not
Xiang Yan person in 0.42% 905,602.00 0.00 0 905,602.00 0
applicable
China
Strategic investors or
general legal entities
becoming top 10
shareholders as a result of None
the placement of new
shares (if any) (see Note
3)
Description of the above-
Among the top 10 shareholders, CETC Glarun Group Co., Ltd. was not related to other shareholders
mentioned shareholders'
and was not a party acting in concert. The Company did not know whether other shareholders were
association or concerted
related to each other or were parties acting in concert.
actions
Explanation of the above
shareholders' involvement
in proxy/entrusted voting None
rights and abstention from
voting rights
Special note on the
existence of repurchase
special accounts of the top None
10 shareholders (if any)
(see Note 10)
Shareholding of the top 10 tradable shareholders
Type of shares
Number of listed and tradable shares held at the end of the reporting
Shareholder name Type of
period Quantity
shares
Domestic
Shenwan Hongyuan listed 5,476,788.0
5,476,788.00
Securities (H.K.) Ltd. foreign 0
shares
Domestic
listed 3,104,600.0
He Wei 3,104,600.00
foreign 0
shares
Domestic
GUOTAI JUNAN
listed 2,747,797.0
SECURITIES (HONG 2,747,797.00
foreign 0
KONG) LIMITED
shares
Domestic
listed 2,449,739.0
Zheng Enyue 2,449,739.00
foreign 0
shares
Domestic
listed 2,022,200.0
Sun Huiming 2,022,200.00
foreign 0
shares
Gu Jinhua 1,871,371.00 Domestic 1,871,371.0
Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co., Ltd.
listed 0
foreign
shares
Domestic
listed 1,168,820.0
Li Mingling 1,168,820.00
foreign 0
shares
Domestic
listed 1,010,900.0
Zhen Hongquan 1,010,900.00
foreign 0
shares
Domestic
listed
Xiang Yan 905,602.00 905,602.00
foreign
shares
Domestic
listed
Xia Zulin 900,000.00 900,000.00
foreign
shares
Description of the
relationship or concerted
action among the top 10
shareholders with
unlimited tradable shares, The Company did not know whether the above shareholders were related to each other or were
and between the top 10 acting in concert.
shareholders with
unlimited tradable shares
and the top 10
shareholders
Description of the
participation of the top 10
ordinary shareholders in
None
margin financing and
securities lending business
(if any) (see Note 4)
Details of the Top Ten Shareholders’ Participation in Share Lending Through Refinancing Business
□Applicable Not applicable
Changes in the Composition of the Top Ten Shareholders
□Applicable Not applicable
Whether the Company's top 10 ordinary shareholders and top 10 shareholders holding ordinary shares with unlimited selling
conditions entered into agreed repurchase transactions during the reporting period
□Yes No
The top 10 ordinary shareholders of the Company and the top 10 shareholders holding ordinary shares with unlimited selling
conditions did not conduct agreed repurchase transactions during the reporting period.
2. Controlling shareholder of the Company
Nature of controlling shareholder: central state-owned holding
Type of controlling shareholder: legal person
Name of controlling Legal
Date of establishment Organization code Main business
shareholder representative/person
Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co., Ltd.
in charge
Research and
development of
electronic products,
communication
equipment, instruments
and meters, research
and development of
railway special
equipment and
accessories, research
and development of
computer software and
hardware, technical
services, import and
export business of self-
operated and agent
commodities and
technologies, domestic
trade, design and
CETC Glarun Group
Wang Jianming December 17, 2007 91320000670120685E construction of
Co., Ltd.
intelligent building
system engineering,
electronic system
engineering, highway
communication,
monitoring and toll
collection integrated
system engineering,
consulting services
related to aviation
systems, research and
development of
agricultural machinery
and accessories,
technical services,
construction and
maintenance of
agricultural production
information systems
Shareholdings in other
domestic and foreign
listed companies which
the controlling
shareholder controlled Shares of other domestic and overseas listed company holding and participating shares include: Glarun
or in which the Technology Co., Ltd., CETC Digital Technology Co., Ltd.
controlling shareholder
held an equity stake
during the reporting
period
Changes of controlling shareholder during the reporting period
Applicable □Not applicable
Name of new controlling shareholder CETC Glarun Group Co., Ltd.
Date of change April 17, 2023
Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co., Ltd.
Announcement on Completing Transfer Registration and
Changing Controlling Shareholder for Free Transfer of State-
Query index on the designated website
owned Shares (Announcement No.: 2023-011) released on
CNINFO
Date of disclosure on the designated website April 18, 2023
3. Actual controller of the Company and persons acting in concert
Nature of actual controller: central state-owned assets management institution
Type of actual controller: legal person
Legal
Name of actual
representative/person Date of establishment Organization code Main business
controller
in charge
Mainly engaged in the
construction of national
important military and
civilian large-scale
electronic information
China Electronics Unified social credit systems, and the
Technology Group Wang Haibo February 25, 2002 code development and
Corporation 91110000710929498G production of major
equipment,
communication and
electronic equipment,
software and key
components.
Equity interests in Other domestic and foreign listed companies controlled by the actual controller: Hangzhou Hikvision
other domestic and Digital Technology Co., Ltd., Taiji Computer Corporation Limited, CETC Digital Technology Co.,
foreign listed Ltd., CETC Cyberspace Security Technology Co., Ltd.; Glarun Technology Co., Ltd., CETC Chip
companies controlled Technology Co., Ltd., Sun Create Electronics Co., Ltd., Chengdu Spaceon Electronics Co., Ltd., CETC
by the actual controller Potevio Science & Technology Co., Ltd., Phoenix Optics Co., Ltd., Hebei Sinopack Electronic
during the reporting Technology Co., Ltd., Eastern Communications Co., Ltd., Eastcompeace Technology Co., Ltd., Guobo
period Electronics Co., Ltd., and Chengdu SIWI Science and Technology Co., Ltd.
Change of actual controller during the reporting period
□Applicable Not applicable
The actual controller of the Company was not changed during the reporting period.
Ownership and control relationship between the Company and the actual controller in the form of a block diagram
State-owned Assets Supervision and
Administration Commission of the
State Council
100%
China Electronics Technology Group
Corporation
100%
CETC Glarun Group Co., Ltd.
53.49%
Nanjing Putian Telecommunications
Co., Ltd.
Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co., Ltd.
Control of the Company by the actual controller through trust or other asset management modes
□Applicable Not applicable
4. The controlling shareholder or the largest shareholder of the Company and the persons acting in
concert pledged 80% of the number of shares held by them
□Applicable Not applicable
5. Other corporate shareholders holding more than 10% of shares
□Applicable Not applicable
6. Restrictions on shareholding reduction by controlling shareholder, actual controller, restructured
parties and other entities making commitments
□Applicable Not applicable
IV. Implementation of share repurchase during the reporting period
Implementation progress of share repurchase
□Applicable Not applicable
Implementation progress of reducing repurchased shares by centralized bidding transaction
□Applicable Not applicable
Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co., Ltd.
Section VIII Information on Preferred Shares
□Applicable Not applicable
The Company had no preferred shares during the reporting period.
Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co., Ltd.
Section IX Information on Bonds
□Applicable Not applicable
Auditor’s Report
DAXIN SHEN ZI [2024]No. 1-00663
To the Shareholders of Nanjing Putian Telecommunications Co., Ltd.:
I. Opinion
We have audited the financial statements of Nanjing Putian Telecommunications Co., Ltd (hereafter
referred to as “the Company”), which comprise the consolidated and the Company's balance sheets
as at December 31, 2023, the consolidated and the Company's statements of income, the
consolidated and the Company's statements of cash flows and the consolidated and the Company's
statements of changes in equity for the year then ended, and notes to the financial statements.
In our opinion, the accompanying financial statements give a true and fair view of the financial
position of the Company as at December 31, 2022, and of its financial performance and cash flows
for the year then ended in accordance with Accounting Standards for Business Enterprises.
II. Basis for Opinion
We conducted our audit in accordance with Chinese Certified Public Accountants Auditing
Standards. Our responsibilities under those standards are further described in the Auditor’s
Responsibilities for the Audit of the Financial Statements section of our report. We are independent
of the Company in accordance with the Code of Ethics for Chinese Certified Public Accountants and
have fulfilled our other ethical responsibilities in accordance with the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinion.
III. Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in
our audit of the financial statements of the current period. These matters were addressed in the
context of our audit of the financial statements as a whole, and in forming our opinion thereon, and
we do not provide a separate opinion on these matters.
(I) Revenue recognition
1. Event description
As stated in notes III (25) of the financial statements and notes V(34), Operating revenue and
operating costs, the sales revenue of the company in 2023 was81,833.44 ten thousand yuan.
Operating income is one of the company's key performance indicators and an important part of the
source of profit. There is an inherent risk that management manipulates revenue recognition for
specific purposes, and we therefore identify revenue recognition as a critical audit event.
2. Audit response
(1) Understand and evaluate the revenue process of transaction booking and key internal controls of
management.
(2) Select samples of revenue transactions recorded in the reporting period, check sales orders, sales
invoices, shipping records, customer receipt documents and other materials, and evaluate whether
relevant revenue recognition conforms to your company's accounting policies for revenue
recognition.
(3) Perform analytical review procedures for operating revenue and gross profit margin based on
product, customer and other dimensions to judge the rationality of changes in operating revenue and
gross profit margin.
(4) Confirm the sales revenue generated by major customers and the balance of accounts receivable
to evaluate the authenticity and accuracy of your company's revenue recognition.
(5) Perform sample tests on sales revenue recognized around the balance sheet date to assess
whether sales revenue is recognized in the appropriate period.
(II) Provision for bad debts of accounts receivable
Event description
The relevant disclosures are detailed in notes III (12) and V (3) to the financial statements.
As of December 31, 2023, the book balance of accounts receivable of the company is 49,973.00 ten
thousand yuan, the balance of bad debt reserve is 19,811.17 ten thousand yuan, and the book value is
30,161.83 ten thousand yuan, accounting for 36.50% of the total assets
The management of your company (hereinafter referred to as the management) measures its loss
reserve in accordance with the expected credit loss amount equivalent to the entire duration based on
a single account receivable or a combination of accounts receivable based on the credit risk
characteristics of each account receivable. For the receivables that measure expected credit losses on
a single item basis, the management estimates the expected cash flow by taking into account
reasonable and evidence-based information about past events, current conditions and future
economic conditions, and determines the allowance for bad debts accordingly. For accounts
receivable that measure expected credit loss on the basis of portfolio, the management divides the
portfolio based on aging, refers to historical credit loss experience and makes adjustments according
to forward-looking estimates, and prepares a comparison table between aging accounts receivable
and expected credit loss rate to determine the allowance for bad debts.
Due to the significant amount of accounts receivable and the significant management judgment
involved in the impairment test of accounts receivable, we identified the impairment of accounts
receivable as a critical audit matter.
2. Audit response
For the impairment of accounts receivable, our audit procedures mainly include:
(1) Understand and evaluate the design and operational effectiveness of key internal controls related
to accounts receivable bad debt reserve;;
(2) For the accounts receivable for which bad debt provision is made according to individual
assessment, we have sampled and reviewed the basis for the management to calculate the
recoverable amount, including the management's assessment of the customer's credit risk based on
the customer's current credit status, repayment willingness and repayment ability;
(3) For the accounts receivable set aside for bad debts according to the aging combination, we
sampled the key information such as aging and overdue days；
(4) We reviewed management's calculation of allowance for doubtful accounts receivable;
(5) Implement confirmation of large and important accounts receivable, and evaluate the rationality
of the management's provision for bad debts of accounts receivable based on procedures such as
post-period collection and long-term reason analysis of accounts receivable.
IV. Other Information
The directors of the Company are responsible for the other information. The other information
comprises all of the information included in the annual report other than the financial statements and
our auditor’s report thereon.
Our opinion on the financial statements does not cover the other information and we do not express
any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other
information and, in doing so, consider whether the other information is materially inconsistent with
the financial statements or our knowledge obtained in the audit or otherwise appears to be materially
misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this
other information, we are required to report that fact. We have nothing to report in this regard.
V. Responsibilities of the Directors and Those Charged with Governance for the Financial
Statements
The directors of the Company are responsible for the preparation of financial statements that give a
true and fair view in accordance with Accounting Standards for Business Enterprises, and for such
internal control as the directors determine is necessary to enable the preparation of the financial
statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the Company’s
ability to continue as a going concern, disclosing, as applicable, matters related to going concern and
using the going concern basis of accounting unless the directors either intend to liquidate the
Company or to cease operations or have no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Company’s financial reporting
process.
VI. Certified Public Accountant’s Responsibilities for the Audit of the Financial
Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report
that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in
accordance with auditing standards will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of users taken on
the basis of these financial statements.
As part of an audit in accordance with auditing standards, we exercise professional judgement and
maintain professional scepticism throughout the audit. We also:
A. Identify and assess the risks of material misstatement of the financial statements, whether due to
fraud or error, design and perform audit procedures responsive to those risks, and obtain audit
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not
detecting a material misstatement resulting from fraud is higher than for one resulting from error, as
fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of
internal control.
B. Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Company’s internal control.
C. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by the directors.
D. Conclude on the appropriateness of the directors’ use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related to events or
conditions that may cast significant doubt on the Company’s ability to continue as a going concern.
If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s
report to the related disclosures in the financial statements or, if such disclosures are inadequate, to
modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our
auditor’s report. However, future events or conditions may cause the Company to cease to continue
as a going concern.
E. Evaluate the overall presentation, structure and content of the financial statements, and whether
the financial statements represent the underlying transactions and events in a manner that achieves
fair presentation.
F. Obtain sufficient appropriate audit evidence regarding the financial information of the entities or
business activities within the Company to express an opinion on the financial statements. We are
responsible for the direction, supervision and performance of the group audit. We remain solely
responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned
scope and timing of the audit and significant audit findings, including any significant deficiencies in
internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with
relevant ethical requirements regarding independence, and to communicate with them all
relationships and other matters that may reasonably be thought to bear on our independence, and
where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters
that were of most significance in the audit of the financial statements of the current period and are
therefore the key audit matters. We describe these matters in our auditor’s report unless law or
regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we
determine that a matter should not be communicated in our report because the adverse consequences
of doing so would reasonably be expected to outweigh the public interest benefits of such
communication.
WUYIGE CERTIFIED PUBLIC ACCOUNTANTS LLP.
Certified Public Accountant of China
(Engagement partner)
Certified Public Accountant of China
China . Beijing
Date: April 26, 2024
Nanjing Putian Telecommunications Co., Ltd.
Notes to Financial Statements
Monetary unit: RMB Yuan
I. Company profile
Nanjing Putian Telecommunications Co., Ltd. (the “Company”), whose predecessor is Nanjing
Telecommunication Facility Factory, was established as a limited liability company through
financing under the approval of National Economic Institutional Reform Commission with
document of approval numbered TGS [1997] 28 dated March 21, 1997. The Company is
headquartered in Nanjing City, Jiangsu Province. Currently it holds a business license with unified
social credit code of 91320000134878054G, with registered capital of 215,000,000.00 yuan, total
share of 215,000,000.00 shares, with par value of 1 yuan per share. Among them, 115,000,000
shares are state-owned legal person shares, and 100,000,000 shares are B shares. The Company was
listed on the Shenzhen Stock Exchange on May 22, 1997.
The Company belongs to telecommunication equipment manufacture industry and is mainly engaged
in R&D, production, and sale of data, wire and wireless telecommunication equipment, distribution
and allocation of layout of telecommunication product, multimedia computer, digital television,
vehicle electronics and conference video system. R & D, manufacturing and sales of new energy
vehicle charging products and their accessories (including electric vehicle charger charging module,
charging station system, split charging cabinet, outdoor integrated pile, various AC and DC charging
piles and other accessories); Design and sales of new energy charging and discharging overall
solutions; Electric vehicle charging operation and maintenance. R & D and sales of software and
intelligent software platform. Smart city, smart elderly care and other industry information services.
R & D, manufacturing, sales, installation and service of video equipment and video conference
system. Agent sales of communication modified vehicles (excluding wholesale), and provide
corresponding after-sales service. Design, system integration and related consulting services of
communication information network engineering and computer information system engineering.
Design, construction, installation and service of building intelligent system engineering. Lease of
self owned assets such as houses and equipment.
The financial statements have been deliberated and approved for issue by the Board of Directors
dated April 26, 2024.
The Company includes Nanjing Putian Changle Communication Equipment Co., LTD., Nanjing
Putian Tianji Building Intelligence Co., LTD., and other five subsidiaries in the scope of the current
consolidated financial statements, as detailed in Notes VII and VIII of the financial statements.
II. Preparation basis of the financial statements
(I) Preparation basis
The financial statements of the Company are prepared on the basis of going concern, based on actual
transactions and events, in accordance with the Accounting Standards for Business Enterprises-Basic
Standards and specific Accounting Standards promulgated by the Ministry of Finance (hereinafter
collectively referred to as the "Accounting Standards for Business Enterprises") and based on the
important accounting policies and accounting estimates described below.
(II) Assessment of the ability to continue as a going concern
The Company has no events or circumstances that would cause material doubt about its ability to go
as a going concern for the 12 months from the end of the reporting period.
The company optimizes the industrial layout, focuses on the main business, continues to promote the
upgrading and transformation of the business to intelligent conference, intelligent wiring, intelligent
power distribution, intelligent lighting, expand the high-quality market direction of central
enterprises, finance, energy, airports, ports, military industry, promote innovation and research and
development capabilities, and strive to form core and differentiated competitive advantages to
improve the company's core competitiveness. In 2024, the company won the bid or signed the
"National Oil and Gas Pipeline Network Group Co., LTD. Video Conference Project", with the
project amount of about 85 million yuan; "Ningbo Rail Transit Line 6 Phase I distribution box
(cabinet)", the project amount is about 37.33 million yuan; "Hubei Provincial Center for Disease
Control and Prevention comprehensive capacity improvement (Phase I) project, the project amount
of about 7.48 million yuan and other projects. The company continues to consolidate the advantages
of the industry, while actively expanding the upstream and downstream industry chain of China
Electronics Group synergy, 2023 sales to member units increased by 88% over the previous year.
III. Significant accounting policies and estimates
Important note: The Company has formulated specific accounting policies and estimates for
transactions or matters such as impairment of financial instruments, depreciation of fixed assets,
amortization of intangible assets and revenue recognition according to the actual characteristics of
production and operation.
(I) Statement of compliance
The financial statements prepared by the Company comply with the requirements of the Accounting
Standards for Business Enterprises and truly and completely reflect the financial position of the
Company as of December 31, 2022, the operating results and cash flows of the year from January to
December 2022 and other relevant information.
(II) Accounting period
The accounting year of the Company runs from January 1 to December 31 under the Gregorian
calendar.
(III) Operating cycle
The Company has a relatively short operating cycle for its business, an asset or a liability is
classified as current if it is expected to be realized or due within 12 months.
(IV) Functional currency
The Company’s functional currency is Renminbi (RMB) Yuan.
(V) Method for determining importance criteria and selection criteria
Importance of itemized items in the notes to the financial statements
The Company determines the importance of the detailed items in the notes to the financial
statements, and on the basis of the importance of the items in the financial statements, the specific
items account for a certain proportion of the project, or the combined amount, while taking into
account the nature of the specific items. Some items are not material to the financial statements but
may be material to the notes and still need to be disclosed separately in the notes. The relevant
materiality criteria for the notes to the financial statements are:
item Materiality criteria
Accounting for more than 5% of the amount of the corresponding receivables, and the
Material item receivables for
amount exceeds 4 million yuan, or the provision for bad debts in the current period affects
provision for bad debts
the change in profit and loss
Recovery or reversal of The impact of the reversal of bad debt reserves accounts for more than 5% of the current
provisions for bad debts of period's bad debt reserves, and the amount exceeds 1 million yuan, or affect the change in
significant receivables profit and loss of the current period
item Materiality criteria
Significant debt investments Accounts for more than 5% of the debt investment, and the amount exceeds 1 million yuan
Important accounts payable and
Account for more than 5% of the balance of accounts payable or other payables, and the
other payables with an account
amount exceeds 1 million yuan
age of more than 1 year
Book value of a long-term equity investment of more than 10%, or investment gains (losses
Significant joint ventures or
in absolute terms) from a joint venture or associate of more than 10% of the net profit of the
associates
consolidated statement
(VI) Accounting treatments of business combination under and not under common control
1. Accounting treatment of business combination under common control
Of a long-term equity investment under the same control enterprise merger form combined party to
pay in cash, transfers non-cash assets or bear debt, as a merger of consideration, the company
owners' equity on the combining date according to the combined party on the final the share of the
book value of the control side of the consolidated financial statements as the initial cost of the long-
term equity investment. If the merging party issues equity instruments as the merger consideration,
the total par value of the issued shares shall be used as the share capital. The difference between the
initial investment cost of long-term equity investment and the book value of the combined
consideration (or the total face value of the issued shares) shall be adjusted to the capital reserve; If
the capital reserve is insufficient to offset, the retained earnings shall be adjusted.
2. Accounting treatment of business combination not under common control
For business combinations not under the same control, the merger cost is the sum of the fair value of
the assets paid by the purchaser, the liabilities incurred or assumed and the equity securities issued
by the purchaser on the purchase date in order to gain control over the acquired purchaser. The
identifiable assets, liabilities and contingent liabilities of the purchased party that are acquired in a
business combination under different control and meet the recognition conditions shall be measured
at fair value on the purchase date. The difference between the buyer's cost of the merger and the fair
value share of the identifiable net assets of the acquiree obtained in the merger is reflected as the
value of goodwill. If the merger cost is less than the fair value share of the identifiable net assets of
the acquiree obtained in the merger, the difference between the merger cost and the fair value share
of the identifiable net assets of the acquiree obtained in the merger shall be included in the non-
operating income of the current period.
(VII) Compilation method of consolidated financial statements
1. Scope of consolidated financial statements
The parent company includes all subsidiaries under its control in the consolidated scope of the
consolidated financial statements. The consolidated financial statements are based on the financial
statements of the parent company and its subsidiaries and are prepared by the parent Company in
accordance with Accounting Standards for Business Enterprises No. 33 - Consolidated Financial
Statements based on other relevant information.
The Company includes all subsidiaries (including the separate entities controlled by the Company)
into the scope of consolidated financial statements, including the enterprises controlled by the
Company, the divisible parts of the investee units and the structured entities.
2. Unify the accounting policies, balance sheet dates and accounting periods of the parent-subsidiary
company
If the accounting policies or accounting periods adopted by a subsidiary are not consistent with those
adopted by the Company, it shall make necessary adjustments to the financial statements of the
subsidiary in accordance with the accounting policies or accounting periods adopted by the
Company when preparing the consolidated financial statements.
3. Offset items in consolidated financial statements
The consolidated financial statements are based on the financial statements of the Company and
subsidiaries and have offset internal transactions that occur between the Company and subsidiaries
and among subsidiaries. The shares of the owners' equity of subsidiaries that do not belong to the
Company shall, as minority shareholders' equity, be listed under the "minority shareholders' equity"
item in the consolidated balance sheet. Long-term equity investments of the Company held by
subsidiaries are considered Treasury shares of the Company and are shown as a deduction of
Stockholders' equity in the consolidated balance sheet under the item of Stockholders' equity as
"Less: Treasury shares".
4. Merger and acquisition of subsidiary accounting treatment
For the subsidiaries acquired by the merger of enterprises under the same control, the merger shall
be deemed to have occurred when the ultimate controlling party began to exercise control, and its
assets, liabilities, operating results and cash flows shall be included in the consolidated financial
statements from the beginning of the merger period. For subsidiaries acquired by a merger of
enterprises not under the same control, the individual financial statements shall be adjusted on the
basis of the fair value of identifiable net assets on the purchase date when preparing consolidated
financial statements.
5. Accounting for the disposal of subsidiaries
In the case of partial disposal of the long-term equity investment in the subsidiary without loss of
control, in the consolidated financial statements, the disposal price and the disposal of the long-term
equity investment shall be entitled to the difference between the shares of net assets continuously
calculated by the subsidiary since the purchase date or the merger date, and the capital reserve
(capital premium or equity premium) shall be adjusted. If the capital reserve is insufficient for write-
down, the retained earnings shall be adjusted.
If the investor loses the right of control due to the disposal of part of the equity investment or other
reasons, the remaining equity shall be remeasured according to the fair value on the date of the loss
of the right of control when preparing the consolidated financial statements. The sum of the
consideration obtained from the disposal of the equity and the fair value of the remaining equity,
minus the difference between the shares of the original shareholding proportion which should enjoy
the net assets continuously calculated from the purchase date or merger date of the original
subsidiary, shall be included in the investment income of the period of loss of control, and the
goodwill shall be written down at the same time. Other comprehensive income related to the equity
investment of the original subsidiary shall be converted to current investment income when the right
of control is lost.
(VII) Classification of joint arrangements and accounting treatment of joint operations
1. Classification of joint venture arrangements
Joint venture arrangement is divided into joint venture and joint venture. If the joint venture
arrangement is not reached by a single entity, it shall be classified as joint operation. A separate
subject refers to a subject with a separate identifiable financial structure, including a separate legal
entity and a subject without legal entity qualification but recognized by law. A joint venture
arrangement through a separate entity, usually classified as a joint venture. Where the rights and
obligations of the party under the joint venture arrangement have changed due to changes in relevant
facts and circumstances, the party shall reassess the classification of the joint venture arrangement.
2. Accounting for joint operations
As a participant in the joint operation, the Company shall recognize the following items related to
the share of interests in the joint operation and conduct accounting treatment in accordance with the
relevant accounting standards for enterprises: recognize the assets or liabilities held separately and
recognize the assets or liabilities held jointly according to the share; Recognize the revenue
generated from the sale of the share of output enjoyed by the joint operation; To recognize the
revenue generated by the sale of the output of the joint operation according to its share; Recognize
expenses incurred separately and expenses incurred in joint operations by share.
The Company is a participant without joint control over the joint operation. If the company enjoys
the relevant assets of the joint operation and bears the relevant liabilities of the joint operation, it
shall conduct accounting treatment according to the provisions of the joint operation participant;
Otherwise, according to the provisions of the relevant enterprise accounting standards for accounting
treatment.
3. Accounting treatment of joint venture
The company is the joint venture party, in accordance with the "Accounting Standards for
Enterprises No. 2 - Long-term Equity investment" for the joint venture investment accounting
treatment; The Company is not a joint venture party, according to the extent of the impact on the
joint venture accounting treatment.
(VIII) Recognition criteria of cash and cash equivalents
Cash as presented in cash flow statement refers to cash on hand and deposit on demand for payment.
Cash equivalents refer to short-term, highly liquid investments that can be readily converted to cash
and that are subject to an insignificant risk of changes in value.
(IX) Foreign currency translation
1. Translation of foreign currency business
The Company shall enter the foreign currency transactions in standard currency at the spot rate
equivalent to the date of occurrence of the transaction. The foreign currency monetary items on the
balance sheet date shall be translated at the spot exchange rate on the balance sheet date. The
exchange difference arising from the difference between the spot exchange rate on the current date
and the initial recognition rate or the spot exchange rate on the previous balance sheet date shall be
included in the current profit and loss, except that the exchange difference of special foreign
currency loans conforming to the capitalization conditions shall be capitalized and included into the
cost of related assets during the capitalization period. For foreign currency non-monetary items
measured at historical cost, the spot exchange rate on the transaction date shall still be adopted and
the amount of the accounting standard currency shall not be changed. Foreign currency non-
monetary items measured at fair value shall be converted by the spot exchange rate on the date of
fair value determination. The difference between the converted amount of accounting standard
currency and the original amount of accounting standard currency shall be treated as fair value
changes (including exchange rate changes) and recorded into current profit and loss or recognized as
other comprehensive income.
2. Translation of financial statements measured in foreign currency
If the subsidiaries, joint ventures and associated enterprises of the Company adopt a different
accounting standard currency from the Company, they shall conduct accounting and preparation of
consolidated financial statements after converting their foreign currency financial statements. The
assets and liabilities in the balance sheet shall be translated at the spot exchange rate at the balance
sheet date, and the owners' equity items shall be translated at the spot exchange rate at the time of
occurrence except for the "undistributed profit" item. The income and expense items in the income
statement shall be converted at the spot exchange rate on the transaction date. The balance of
translation in foreign currency financial statements resulting from translation is shown as follows in
owners' equity items and other comprehensive income in the balance sheet. Foreign currency cash
flows shall adopt the spot rate on the date of occurrence of cash flows. The impact of exchange rate
changes on cash is shown separately in the statement of cash flows. When disposing of overseas
operations, the balance of translation of foreign currency statements related to the overseas
operations shall be transferred into the disposal profit or loss of the current period in full or in
proportion to the disposal of the overseas operations.
(X) Financial instruments
1. Classification and reclassification of financial instruments
Financial instruments refer to contracts that form the financial assets of one party and the financial
liabilities or equity instruments of another party.
(1) Financial assets
The Company classifies financial assets that meet the following conditions as financial assets
measured at amortized cost: ① The Company's business model of managing financial assets is to
collect contract cash flow; ② The terms of the contract of the financial asset stipulate that the cash
flow generated on a specified date is only the payment of the principal amount and the interest based
on the outstanding principal amount.
The Company classifies the financial assets that meet the following conditions as those measured at
fair value and whose changes are included in other comprehensive income: ① The Company's
business model of managing financial assets aims at both collecting contract cash flow and selling
the financial assets; ② The terms of the contract of the financial asset stipulate that the cash flow
generated on a specified date is only the payment of the principal amount and the interest based on
the outstanding principal amount.
For investments in non-trading equity instruments, the Company may, upon initial recognition,
irrevocably designate them as financial assets measured at fair value and whose changes are included
in other comprehensive income. The designation is made on an individual investment basis and the
underlying investment meets the definition of an equity instrument from the issuer's point of view.
In addition to financial assets classified as financial assets measured at amortized cost and financial
assets measured at fair value and whose changes are booked into other comprehensive income, the
Company classifies them as financial assets measured at fair value and whose changes are booked
into current profit and loss. In the initial recognition, if accounting mismatch can be eliminated or
reduced, the Company may irrevocably designate financial assets as financial assets measured at fair
value and whose changes are recorded into current profit and loss.
When the Company changes the business model of managing financial assets, it will reclassify all
the affected financial assets on the first day of the first reporting period after the change of the
business model, and adopt the future applicable method to conduct relevant accounting treatment
from the reclassification date, without retroactive adjustment of previously recognized gains, losses
(including impairment losses or gains) or interest.
(2) Financial liabilities
Financial liabilities at the initial recognition are classified as: financial liabilities measured at fair
value and whose changes are booked into current profit and loss; The financial assets transfer does
not meet the conditions for termination of recognition or continues to involve the financial liabilities
formed by the transferred financial assets; Financial liabilities measured at amortized cost. All
financial liabilities are not reclassified.
2. Measurement of financial instruments
The Company's financial instruments are initially recognized as measured at fair value. For financial
assets and financial liabilities measured at fair value and whose changes are booked into current
profit and loss, relevant transaction costs are directly booked into current profit and loss; For other
types of financial assets or financial liabilities, related transaction costs are included in the initial
recognized amount. For accounts receivable or notes receivable arising from the sale of products or
the provision of services that do not contain or take into account significant financing components,
the amount of consideration to which the Company is entitled to collect as expected shall be the
initial recognition amount. Subsequent measurement of financial instruments depends on their
classification.
(1) Financial assets
①Financial assets measured at amortized cost. After the initial recognition, such financial assets are
measured by the amortized cost using the effective interest rate method. The gains or losses
generated by financial assets measured at amortized cost and not belonging to any hedging
relationship shall be booked into current profit and loss when recognition is terminated, reclassified,
amortized according to the effective interest rate method or impairment is recognized.
②Financial assets that are measured at fair value and whose changes are booked into current profit
or loss. After the initial recognition, such financial assets (except part of the financial assets
belonging to the hedge relationship) shall be measured at the fair value, and the resulting gains or
losses (including interest and dividend income) shall be booked into current profit and loss.
③Investment in debt instruments that are measured at fair value and whose changes are recorded in
other comprehensive income. After the initial recognition, the fair value of such financial assets is
used for subsequent measurement. Interest, impairment losses or gains and exchange gains and
losses calculated using the effective interest rate method are included in current profit and loss, while
other gains or losses are included in other comprehensive income. Upon termination of recognition,
the accumulated gains or losses previously booked into other comprehensive income shall be
transferred out of other comprehensive income and booked into current profit and loss.
(2) Financial liabilities
① Financial liabilities measured at fair value and whose changes are booked into current profit and
loss. Such financial liabilities include trading financial liabilities (including derivative instruments
belonging to financial liabilities) and financial liabilities designated as measured at fair value and
whose changes are booked into current profit and loss. After the initial recognition, the fair value of
such financial liabilities is used for subsequent measurement. Except for the hedge accounting, the
gain or loss (including interest expense) generated by the change in the fair value of trading financial
liabilities is booked into current profit and loss. If a financial liability is specified as a financial
liability measured at fair value and its change is included in current profit and loss, the change in the
fair value of the financial liability caused by the change of the enterprise's own credit risk shall be
included in other comprehensive income, and the change in other fair value shall be included in
current profit and loss. If accounting mismatch in profit and loss will be caused or expanded if the
impact of the change in credit risk of the financial liability is included in other comprehensive
income, the Company shall book all gains or losses of the financial liability into current profit and
loss.
② Financial liabilities measured at amortized cost. After the initial recognition, such financial
liabilities are measured at amortized cost using the effective interest rate method.
3. The Company's method of recognizing the fair value of financial instruments
If there are financial instruments in active markets, their fair value shall be determined by quotation
in active markets; If there is no active market for financial instruments, use valuation techniques to
determine their fair value. Valuation techniques mainly include market method, income method and
cost method. In limited cases, if recent information used to determine fair value is insufficient, or if
the distribution of possible estimates of fair value is wide, and cost represents the best estimate of
fair value within the range, the cost may represent its appropriate estimate of fair value within the
range of distribution. The Company uses all information about the investee's performance and
operations available after the initial confirmation date to determine whether the cost represents fair
value.
4. Recognition basis and measurement method for transfer of financial assets and financial liabilities
(1) Financial assets
The financial assets of the Company shall be terminated if they meet one of the following conditions:
(1) The contractual right to collect the cash flow of the financial assets shall be terminated; (2) The
financial assets have been transferred, and the company has transferred almost all the risks and
rewards of the ownership of the financial assets; (3) The financial assets have been transferred.
Although the Company has neither transferred nor retained almost all rewards on the ownership of
the financial assets, it has not retained control of the financial assets.
Where the Company neither transfers nor retains almost all remuneration on the ownership of the
financial assets, and retains control over the financial assets, the relevant financial assets shall be
recognized according to the degree of continued involvement in the transferred financial assets, and
the relevant liabilities shall be recognized accordingly.
If the transfer of financial assets meets the conditions for termination of recognition as a whole, the
difference between the following two amounts shall be recorded into the current profit and loss: (1)
the book value of the transferred financial assets on the date of termination of recognition; (2) The
sum of the consideration received due to the transfer of financial assets and the amount
corresponding to the part of termination of recognition in the accumulative amount of the change in
fair value directly included in other comprehensive income (the financial assets involved in the
transfer are financial assets classified as measured at fair value and whose change is included in
other comprehensive income).
If the partial transfer of financial assets meets the conditions for termination of recognition, the book
value of the whole transferred financial assets shall be apportioned between the terminated and
unterminated part according to their relative fair value on the transfer date, and then the difference of
the following two amounts shall be recorded into current profit and loss: (1) The book value of the
terminated recognition part on the termination of recognition date; (2) The sum of the consideration
received for the part of termination recognition and the amount corresponding to the part of
termination recognition in the accumulative amount of changes in fair value originally included in
other comprehensive income (financial assets involved in transfer are financial assets classified as
measured at fair value and whose changes are included in other comprehensive income).
(2) Financial liabilities
If the current obligation of the financial liability (or part thereof) has been discharged, the Company
shall terminate the recognition of the financial liability.
If the recognition of financial liabilities (or part thereof) is terminated, the Company shall book the
difference between the book value and the consideration paid into the current profit and loss.
(XI) Methods for determining expected credit losses and accounting treatment
1. Methods for determining expected credit losses
Based on expected credit losses, the Company conducts impairment accounting treatment and
recognizes loss reserves for financial assets (including receivables) measured at amortized cost,
financial assets classified as measured at fair value and whose changes are included in other
comprehensive income (including receivables financing), lease receivables.
On each balance sheet date, the company evaluates whether the credit risk of relevant financial
instruments has significantly increased since the initial recognition. The process of credit impairment
of financial instruments is divided into three stages, and different accounting treatment methods are
adopted for the impairment of financial instruments at different stages: (1) In the first stage, if the
credit risk of the financial instrument does not increase significantly after the initial recognition, the
Company shall calculate the loss reserve based on the expected credit loss of the financial instrument
in the next 12 months, and calculate the interest income based on its book balance (i.e. without
deducting the impairment reserve) and the actual interest rate; (2) In the second stage, if the credit
risk of the financial instrument has increased significantly since the initial recognition but no credit
impairment has occurred, the Company shall measure the loss reserve according to the expected
credit loss during the entire duration of the financial instrument and calculate the interest income
according to its book balance and actual interest rate; (3) In the third stage, if credit impairment
occurs after the initial recognition, the Company shall measure the loss reserve according to the
expected credit loss during the entire duration of the financial instrument, and calculate the interest
income according to its amortized cost (book balance minus impairment reserve already drawn) and
the actual interest rate.
(1) Lower credit risk financial instruments measure loss reserve method
For financial instruments with lower credit risk at the balance sheet date, the Company may directly
assume that the credit risk of such instruments has not increased significantly since the initial
recognition, without comparing them with the credit risk at the time of their initial recognition.
If the default risk of the financial instrument is low, the debtor has a strong ability to perform its
contractual cash flow obligations in the short term, and even if there are adverse changes in the
economic situation and business environment in a longer period of time, it may not necessarily
reduce the borrower's ability to perform its contractual cash flow obligations, the financial
instrument is regarded as having a low credit risk.
(2) How to measure loss reserve for receivables and lease receivables
① Receivables that do not contain significant financing components. For receivables that are formed
from transactions regulated by Accounting Standard for Business Enterprises No. 14 - Revenue and
do not have a significant financing component, the Company adopts a simplified approach that
always measures the loss reserve against expected credit losses over the entire duration.
Depending on the nature of the financial instrument, the Company assesses whether credit risk is
significantly increased on the basis of individual financial assets or a portfolio of financial assets.
The Company divides notes receivable and accounts receivable into several combinations according
to credit risk characteristics, and calculates expected credit losses on the basis of the combination.
The basis for determining the combination is as follows:
Accounts receivable Portfolio 1: combination of related parties within the scope of consolidation
Accounts receivable Portfolio 2: aging portfolio
Notes Receivable Portfolio 1: Banker's Acceptance receivable
Notes Receivable Portfolio 2: Commercial Acceptance receivable
For the accounts receivable divided into portfolios, the company, by referring to the historical credit
loss experience, combined with the current situation and the forecast of future economic conditions,
prepares the comparison table of the expected credit loss rate between the age of accounts receivable
and the entire duration of accounts receivable to calculate the expected credit loss. For notes
receivable divided into portfolios, the Company calculates expected credit losses based on default
risk exposure and expected credit loss rate over the entire duration by referring to historical credit
loss experience, combining current situation and forecast of future economic conditions.
Accounts receivable -- a comparison of the aging of an aging portfolio with the expected credit loss
rate over its entire life
Aging of account Expected credit loss rate of accounts receivable (%)
Within 1 Year 1.00
1-2 Years 5.00
2-3 Years 10.00
3-4 Years 30.00
4-5 Years 50.00
More than 5 Years 100.00
② Receivables and lease receivables with a significant financing component.
For receivables with a significant financing component and for lease receivables regulated by
Accounting Standard for Business Enterprises No. 21 - Leases, the Company measures the loss
reserve in accordance with the general method known as the "three-stage" model.
(3) Other methods of measuring loss reserves for financial assets
For financial assets other than the above, such as debt investments, other debt investments, other
receivables, long-term receivables other than lease receivables, the Company measures the loss
reserve in accordance with the general method, namely the "three-stage" model.
The Company takes the following factors into account when assessing whether credit risk is
significantly increased in the event of credit impairment of the measurement financial instruments:
The Company divides other receivables into several combinations according to the nature of the
amounts, and calculates the expected credit loss on the basis of the combination. The basis for
determining the combination is as follows:
Other receivables Portfolio 1: Combination of related parties within the scope of consolidation
Other receivables Portfolio 2: Financing margin portfolio
Other receivables Portfolio 3: Export tax rebates receivable portfolio
2. Accounting for expected credit losses
In order to reflect the changes of the credit risks of financial instruments since the initial recognition,
the Company remeasures the expected credit losses on each balance sheet date, and the resulting
increase in the loss reserve or reversal amount shall be recorded into the current profit and loss as
impairment losses or gains. Write off the carrying value of the financial asset listed in the balance
sheet or into the estimated liabilities or into other comprehensive income (debt investment measured
at fair value and its changes into other comprehensive income).
(XII) Inventories
1. Classification of inventory
Inventory refers to finished products or commodities held by the Company in daily activities for sale,
products in the process of production, materials and materials consumed in the process of production
or provision of services, etc. It mainly includes raw materials, turnover materials (packaging, low-
value consumable, etc.), commissioned processing materials, products in process, homemade semi-
finished products, finished products (stock goods), etc.
2. Valuation method for issuing inventory
When the inventory is dispatched, the monthly weighted average method is adopted to determine the
actual cost of delivery.
3. Method of drawing reserve for inventory decline
On the balance sheet date, the inventory shall be measured according to the lower of the cost and net
realizable value, and the inventory decline reserve shall be calculated according to the single
inventory item. However, for the inventory with a large quantity and a low unit price, the inventory
decline reserve shall be calculated according to the inventory category.
On the balance sheet date, the inventory shall be measured by the lower of cost and net realizable
value, and the inventory depreciation reserve shall be calculated according to the difference between
the cost of inventory class and net realizable value. The net realizable value of the inventory directly
used for sale shall be determined by the estimated selling price of the inventory less estimated selling
expenses and related taxes in the normal course of production and operation; For inventories that
need to be processed, the net realizable value shall be determined by the estimated selling price of
finished products produced in the normal course of production and operation after deducting the
estimated cost, estimated selling expenses and related taxes to be incurred upon completion; On the
balance sheet date, if a part of the same inventory has a contract price, but the other part does not
have a contract price, its net realizable value shall be determined respectively, and the corresponding
cost shall be compared with it to determine the amount to be withdrawn or transferred back from the
reserve for inventory declines respectively.
4. Inventory system
The company's inventory system is the perpetual inventory system.
5. Amortization method of low-value consumable products and packaging
Low - value consumable goods and packaging are amortized by one - pass method.
(XIII) Contract assets and contract liabilities
1. Contract assets
The Company presents as a contractual asset the right to receive consideration for goods or services
transferred to the Customer, subject to factors other than the passage of time. Provision for
impairment of contracted assets shall be made according to the expected credit loss method of
financial instruments. For contract assets that do not contain a material financing component, the
Company adopts a simplified method to measure loss provisions. For contract assets that contain
significant financing components, the Company measures loss provisions in accordance with the
general method.
In case of impairment loss on contract assets, "asset impairment loss" shall be debited according to
the amount to be written down, and the impairment provision for contract assets shall be credited;
The reverse entry is made when the asset impairment provision has been transferred back.
2. Contract liabilities
Obligations of the Company to transfer goods or services to the Customer for consideration received
or receivable from the customer shall be listed as contractual liabilities.
The Company presents contractual assets and contractual liabilities under the same contract on a net
basis.
(XIV) Long-term equity investments
1. Initial investment cost determination
For the long-term equity investment obtained from the enterprise merger, if the enterprise merger is
under the same control, the initial investment cost of the long-term equity investment shall be taken
as the share of the owner's equity of the merged party in the book value of the final controlling
party's consolidated financial statements on the merger date; In the case of enterprise merger not
under the same control, the initial investment cost of long-term equity investment shall be taken as
the merger cost determined on the purchase date; For long-term equity investment obtained by cash
payment, the initial investment cost is the actual purchase price paid; For the long-term equity
investment obtained by issuing equity securities, the initial investment cost shall be the fair value of
the equity securities issued; The initial cost of long-term equity investment obtained through debt
restructuring shall be determined in accordance with the relevant provisions of Accounting
Standards for Enterprises “CASBE 12 – Debt Restructuring”; For long-term equity investment
obtained by exchange of non-monetary assets, the initial investment cost shall be determined in
accordance with relevant provisions of Accounting Standards for Business Enterprises “CASBE 7 –
Non-cash Assets Exchange”.
2. Subsequent measurement and recognition method of profit or loss
For long-term equity investments with control relationship, it is accounted for with cost method; for
long-term equity investments with joint control or significant influence relationship, it is accounted
for with equity method. The company for equity investment consortium, one part of through risk
investment institutions, mutual funds, trust companies or similar subject, including cast the insurance
fund, indirect holding, whether the above subject has a significant influence on this part of the
investment, the company in accordance with the accounting standards for enterprises “CASBE 22 –
Financial Instruments: Recognition and Measurement”, and the rest of the equity method accounting.
3. Determine the basis of joint control and significant influence on the invested entity
Of the invested entity has joint control, refers to an arrangement returns have a significant impact on
activity must go through the participants agreed to share control decisions, including the sale and
purchase of goods or services, financial assets management, purchase and disposal of the assets,
research and development activities, and financing activities, etc.; Having a significant influence on
the invested entity refers to having a significant influence when holding more than 20% to 50% of
the voting capital of the invested entity. Or, although less than 20%, has a significant impact if one
of the following conditions is met: representation on the board of directors or a similar authority of
the invested entity; To participate in the policy making process of the investee; Dispatching
management personnel to the invested units; The invested entity relies on the technology or technical
data of the investment company; Having important transactions with the invested units.
(XV) Investment property
The Company's investment property categories, including leased land use rights, leased buildings,
land use rights held and ready to be transferred after appreciation. The initial measurement of
investment property is carried out according to the cost, and the subsequent measurement is carried
out according to the cost model.
The average life method is adopted for the depreciation of leased buildings in the Company's
investment property, and the specific accounting policy is the same as that of fixed assets. The land-
use right leased in investment property and the land-use right held and transferred after appreciation
shall be amortized by the straight-line method. The specific accounting policies are the same as those
for intangible assets.
(XVI) Fixed assets
1. Recognition principles of fixed assets
Fixed assets are tangible assets held for use in the production of goods or rendering of services, for
rental to others, or for administrative purposes, and expected to be used during more than one
accounting year. Fixed assets are recognized if, and only if, it is probable that future economic
benefits associated with the assets will flow to the Company and the cost of the assets can be
measured reliably.
2.Depreciation method of different categories of fixed assets
The company's fixed assets are mainly divided into: buildings and structures, machinery, electronic
equipment, transport facilities, etc. The depreciation method adopts the average life method. The
service life and estimated net salvage value of fixed assets shall be determined according to the
nature and usage of various types of fixed assets. At the end of the year, the service life, estimated
net salvage value and depreciation method of the fixed assets shall be rechecked. If there is any
difference from the original estimate, corresponding adjustment shall be made. In addition to the
fixed assets that have been fully depreciated but are still in use and the land that is separately priced
and recorded, the Company will calculate and depreciate all the fixed assets.
Estimated residual value Annual depreciation rate
Categories Useful life (years)
proportion (%) (%)
Buildings and structures 15-35 3.00 2.77-6.47
Machinery 10-15 3.00 6.47-9.70
Transport facilities 6-8 3.00 12.13-16.17
Electronic equipment 4-11 3.00 8.82-24.25
Estimated residual value Annual depreciation rate
Categories Useful life (years)
proportion (%) (%)
Other equipment 4-11 3.00 8.82-24.25
(XVII) Construction in progress
1. Construction in progress is recognized if, and only if, it is probable that future economic benefits
associated with the item will flow to the Company, and the cost of the item can be measured reliably.
Construction in progress is measured at the actual cost incurred to reach its designed usable
conditions.
2. Construction in progress is transferred into fixed assets at its actual cost when it reaches the
designed usable conditions. When the auditing of the construction in progress was not finished while
reaching the designed usable conditions, it is transferred to fixed assets using estimated value first,
and then adjusted accordingly when the actual cost is settled, but the accumulated depreciation is not
to be adjusted retrospectively.
(XVIII) Borrowing costs
1. Recognition principle of capitalization of borrowing costs
Borrowing costs incurred by the Company that can be directly attributed to the purchase,
construction or production of assets eligible for capitalization shall be capitalized and included in the
cost of relevant assets; Other borrowing costs shall be recognized as expenses according to the
amount incurred when incurred and recorded into current profits and losses. The assets that meet the
capitalization conditions refer to the fixed assets, investment real estate, inventory and other assets
that need to go through a fairly long period of purchase, construction or production activities to
reach the predetermined state of being usable or saleable.
2. Calculation method of capitalization amount
Capitalization period refers to the period from the beginning of capitalization of borrowing costs to
the end of capitalization. Periods of suspension of capitalization of borrowing costs are not included.
Capitalization of borrowing costs shall be suspended if abnormal interruption occurs in the purchase,
construction or production process and the interruption lasts for more than 3 consecutive months.
The borrowing of a special loan shall be determined according to the amount of the interest expense
actually incurred in the current period of the special loan, minus the interest income obtained from
depositing the unused loan funds in the bank or the investment income obtained from temporary
investment; Occupied general borrowings shall be calculated and determined according to the
weighted average of the accumulated asset expenditure exceeding the portion of special borrowings
multiplied by the capitalization rate of occupied general borrowings, and the capitalization rate shall
be the weighted average interest rate of general borrowings; If there is a discount or premium on the
loan, the amount of discount or premium to be amortized in each accounting period shall be
determined according to the effective interest rate method, and the amount of interest for each period
shall be adjusted.
The effective interest rate method is a method to calculate the amortized discount or premium or
interest expense of a loan according to the effective interest rate. The effective interest rate is the
future cash flow of the loan during its expected life, discounted as the interest rate used in the current
book value of the loan.
(XIX) Intangible assets
1. The valuation method of intangible assets
The Company's intangible assets are initially measured at cost. The purchased intangible assets shall
be regarded as the actual cost according to the actual price paid and related expenses. The actual cost
of intangible assets invested by investors shall be determined according to the value stipulated in the
investment contract or agreement, but if the value stipulated in the contract or agreement is unfair,
the actual cost shall be determined according to the fair value. For self-developed intangible assets,
the cost shall be the total amount of expenses incurred before reaching the intended use.
The Company's subsequent measurement methods for intangible assets are as follows: Intangible
assets with limited service life shall be amortized by the straight-line method, and the service life
and amortization method of intangible assets shall be rechecked at the end of the year. If there is any
difference from the original estimate, corresponding adjustment shall be made; Intangible assets with
uncertain service life are not amortized, but at the end of the year, the service life shall be rechecked.
When there is conclusive evidence that the service life is limited, the service life shall be estimated
and amortized according to the straight-line method.
Intangible assets with limited useful life are amortized as follows:
Items Amortization period (years)
Software 3-10
Items Amortization period (years)
patent right and non-patented technology 5-10
land use right 40-50
2. The judgment basis of uncertain service life
The Company will not be able to foresee the period of time that the asset will bring economic
benefits to the Company, or the intangible assets with uncertain service life are identified as
intangible assets with uncertain service life. The judgment basis of uncertain service life is: it comes
from contractual rights or other legal rights, but the contract or legal provisions do not specify the
service life; Based on the industry situation or relevant experts' arguments, it is still impossible to
judge the period when intangible assets bring economic benefits to the company.
At the end of each year, the service life of intangible assets with uncertain service life is reviewed,
mainly in a bottom-up way. The departments related to the use of intangible assets conduct basic
review to evaluate whether the judgment basis of uncertain service life has changed.
3. Specific criteria for research and development stages of internal research and development
projects, as well as specific criteria for development stage expenditures to meet the capitalization
conditions
Expenditure in the research phase of internal research and development projects shall be recorded
into current profits and losses when incurred; The expenditure in the development stage shall be
transferred to the accounting of intangible assets if it meets the conditions of being recognized as
intangible assets.
Specific criteria for dividing the research phase and development phase of an internal research and
development project: (1) it is technically feasible to complete the intangible asset so that it can be
used or sold; (2) it has the intention to complete the intangible asset and use or sell it; (3) The way in
which intangible assets generate economic benefits, including being able to prove that there is a
market for the products produced by using the intangible assets or that there is a market for the
intangible assets themselves, and that the intangible assets will be used internally, being able to
prove their usefulness; (4) it has the support of sufficient technology, financial resources and other
resources to complete the development of the intangible asset and has the ability to use or sell the
intangible asset; (5) The expenditure attributable to the development stage of the intangible asset can
be measured reliably.
(XX) Impairment of part of long-term assets
If long-term equity investment, investment real estate measured by the cost model, fixed assets,
intangible assets of construction in progress and other long-term assets show signs of impairment on
the balance sheet date, the impairment test shall be conducted. If the result of the impairment test
shows that the recoverable amount of the asset is lower than its carrying value, the impairment
reserve shall be calculated and booked into the impairment loss according to the difference.
The recoverable amount is the higher between the net fair value of the asset less the disposal charge
and the present value of the expected future cash flows of the asset. If it is difficult to estimate the
recoverable amount of a single asset, the recoverable amount of the asset group shall be determined
based on the asset group to which the asset belongs. An asset group is the smallest set of assets that
can independently generate cash inflows.
Goodwill shown separately in the financial statements, regardless of whether there is evidence of
impairment, shall be tested for impairment at least annually. In the impairment test, the carrying
value of goodwill is apportion to the group of assets or combination of asset groups expected to
benefit from the synergies of the business combination. If the test results show that the recoverable
amount of the asset group or the asset group combination containing the apportion of goodwill is
lower than its carrying value, the corresponding impairment loss shall be recognized. The amount of
impairment loss shall first offset the book value of goodwill apportion to the asset group or asset
group combination, and then offset the book value of other assets in proportion to the proportion of
the book value of assets other than goodwill in the asset group or asset group combination.
Once the above-mentioned asset impairment loss is recognized, the part whose value can be
recovered shall not be transferred back in the following period.
(XXI) Long-term prepayments
Long-term prepayments are expenses that have been recognized but with amortization period over
one year (excluding one year). They are recorded with actual cost, and evenly amortized within the
beneficiary period or stipulated period. If items of long-term prepayments fail to be beneficial to the
following accounting periods, residual values of such items are included in profit or loss.
(XXII) Employee benefits
Employee benefits refers to various forms of remuneration or compensation provided by the
Company for obtaining services provided by employees or for terminating labor relations. Employee
benefits include short-term employee benefits, post-employment benefits, termination benefits and
other long-term employee benefits.
1. Short-term employee benefits
During the accounting period when employees provide services for the company, the actual short-
term compensation is recognized as liabilities and booked into the current profits and losses, except
for those required or allowed to be booked into the cost of assets by the accounting standards for
enterprises. The employee welfare expense incurred by the Company shall be included in the current
profit and loss or the cost of relevant assets according to the actual amount when it is actually
incurred. If the employee welfare fee is non-monetary welfare, it shall be measured at fair value. The
company for the medical treatment insurance premium of worker pay, inductrial injury insurance,
birth insurance premium of social insurance premiums and housing accumulation fund, and
according to the rules extraction of the trade union and employee education funds and provide
services in the workers of the accounting period, according to the provisions stipulated in the basic
and provision ratio calculate and determine the corresponding compensation amount, and confirm
corresponding liabilities, Include current profit or loss or related asset cost.
2. Post-employment benefits
During the accounting period when employees provide services, the payable amount calculated
according to the set depository plan shall be recognized as liabilities and recorded into the current
profit and loss or the cost of relevant assets. According to the formula determined by the expected
cumulative benefit unit method, the welfare obligation arising from the set benefit plan shall be
attributed to the period of service provided by the employee, and shall be included in the current
profit and loss or the cost of relevant assets.
3. Termination benefits
Termination benefits provided to employees are recognized as an employee benefit liability for
termination benefits, with a corresponding charge to profit or loss at the earlier of the following
dates: a. when the Company cannot unilaterally withdraw the offer of termination benefits because
of an employment termination plan or a curtailment proposal; or b. when the Company recognizes
cost or expenses related to a restructuring that involves the payment of termination benefits.
4. Other long-term employee benefits
Other long-term employee benefits provided by the company to the employees that meet the
conditions for setting up an escrow plan shall be dealt with in accordance with the provisions on
setting up an escrow plan; In addition, identify and measure other long-term employee benefit net
liabilities or net assets according to the relevant provisions of the defined benefit plan.
(XXIII) Provisions
An obligation related to a contingent event is recognized as a projected liability when it is a current
obligation undertaken by the Company and the performance of the obligation is likely to result in an
outflow of economic benefits and the amount of the obligation can be measured reliably. The
Company shall make initial measurement according to the best estimate of the expenditure required
to fulfill the relevant current obligations. If there exists a continuous range of expenditure required
and various outcomes within the range are equally likely to occur, the best estimate shall be
determined as the intermediate value within the range; If more than one project is involved, calculate
the best estimate based on the various possible outcomes and the associated probabilities.
On the balance sheet date, the book value of the projected liabilities shall be reviewed. If there is
conclusive evidence that the book value does not truly reflect the current best estimate, the book
value shall be adjusted according to the current best estimate.
(XXIV) Revenue
The Company has fulfilled its performance obligation under the contract, that is, when the customer
obtains control of the relevant commodity or service, it recognizes revenue according to the
transaction price apportioned to the performance obligation. To acquire the control right of relevant
goods refers to to be able to dominate the use of the goods and obtain almost all the economic
benefits from them. Performance obligation refers to the commitment of the company in the contract
to transfer clearly distinguishable commodities to the customer. Transaction Price represents the
amount of consideration that the Company expects to be entitled to collect as a result of the transfer
of goods to the Customer, excluding monies received on behalf of third parties and monies that the
Company expects to refund to the Customer.
Whether the performance obligation is to be performed within a certain period of time or at a certain
point depends on the terms of the contract and relevant legal provisions. If the performance
obligation is performed within a certain period of time, the Company recognizes revenue according
to the progress of performance. Otherwise, the Company recognizes revenue at a point at which the
customer acquires control of the relevant assets.
If one of the following conditions is met, the performance obligation shall be performed within a
certain period of time; otherwise, the performance obligation shall be performed at a certain point: (1)
The customer obtains and consumes the economic benefits arising from the Company's performance
at the same time as the Company's performance; (2) The customer can control the goods under
construction during the company's performance; (3) The commodities produced by the Company
during the performance of the Contract have irreplaceable uses, and the Company has the right to
collect payment for the accumulated performance completed so far throughout the contract period.
For performance obligations performed within a certain period of time, the Company recognizes
revenue in accordance with the progress of performance during that period. If the performance
progress cannot be reasonably determined and the incurred costs are expected to be compensated,
the revenue shall be recognized according to the amount of incurred costs until the performance
progress can be reasonably determined. For performance obligations performed at a certain point,
revenue is recognized at the point when the customer acquires control of the relevant goods or
services. In determining whether the customer has acquired control of the goods, the Company
considers the following indications: (1) the Company has a current collection right in respect of the
goods, i.e. the customer has a current payment obligation in respect of the goods; (2) the Company
has transferred the legal title of the goods to the Customer, that is, the customer has the legal title of
the goods; (3) The Company has physically transferred the commodity to the customer, that is, the
customer has physically possessed the commodity; (4) The Company has transferred the major risks
and rewards in the ownership of the commodities to the Customer, that is, the customer has obtained
the major risks and rewards in the ownership of the commodities; (5) The customer has accepted the
goods; (6) Other signs indicating that the customer has acquired control of the goods.
Specific methods of revenue recognition
The Company mainly sells video conferencing products, integrated cabling products, intelligent
electrical products, communication basic products and other products. The above product sales
business of the company is a performance obligation performed at a certain point, and the product
revenue recognition shall meet the following conditions: The company has delivered the products to
the purchaser according to the contract and accepted them by the purchaser, and the amount of sales
revenue of the products has been determined, the payment for goods has been recovered or the
receipt of payment has been obtained, and the relevant economic benefits are likely to flow in, and
the costs related to the products can be measured reliably.
(XXV) Contract cost
The contract cost of the Company includes the incremental cost incurred to obtain the contract and
the contract performance cost. Incremental costs incurred to acquire a contract (" contract acquisition
costs ") are costs that would not have been incurred otherwise. If the cost is expected to be recovered,
the Company will recognize it as a contract acquisition cost as an asset.
The cost incurred by the Company to perform the contract, which does not fall within the scope of
accounting standards for enterprises such as inventory and meets the following conditions at the
same time, shall be recognized as an asset as the contract performance cost:
1. The costs are directly related to a current or expected contract and include direct labor, direct
materials, manufacturing expenses (or similar expenses), costs expressly borne by the User and other
costs incurred solely as a result of the contract;
2. The cost increases the Company's resources for future performance obligations;
3. This cost is expected to be recovered.
The Company will recognize the contract performance costs as assets, the amortization period of the
initial recognition does not exceed one year or a normal business cycle, in the balance sheet into the
"inventory" item; If the amortization period is more than one year or one normal operating cycle at
the time of initial recognition, "other non-current assets" will be included in the balance sheet.
The Company shall record the acquired costs of contracts recognized as assets into the "other current
assets" item in the balance sheet if the amortization period at the initial recognition does not exceed
one year or one normal operating cycle. If the amortization period is more than one year or one
normal operating cycle at the time of initial recognition, "other non-current assets" will be included
in the balance sheet.
The Company amortizes the assets recognized for contract acquisition cost and contract performance
cost (hereinafter referred to as "assets related to contract cost") on the same basis as the commodity
revenue recognized for the assets and records them into the current profit and loss. If the
amortization period of the asset formed by the incremental cost of acquiring the contract does not
exceed one year, it shall be included in the current profit and loss at the time of occurrence.
If the carrying value of the asset related to the contract cost is higher than the difference between the
following two items, the Company will calculate and withdraw the excess part of the impairment
reserve and recognize it as the asset impairment loss:
1. The remaining consideration expected to be obtained from the transfer of commodities related to
the asset;
2. Estimate the cost to be incurred for the transfer of the related goods.
If the difference between the foregoing two items is higher than the carrying value of the asset due to
the change of the factors of impairment in the previous period, it shall revert to the original provision
for asset impairment and be included in the current profit and loss, provided that the carrying value
of the asset after the reversal shall not exceed the carrying value of the asset on the date of reversal
assuming no provision for impairment.
(XXVI) Government grants
1. Types of government subsidies and accounting treatment
Government subsidy refers to the monetary assets or non-monetary assets that the Company obtains
free of charge from the government (but does not include the capital invested by the government as
the owner). If the government subsidy is a monetary asset, it shall be measured according to the
amount received or receivable. Where government subsidies are non-monetary assets, they shall be
measured at fair value; If the fair value cannot be obtained reliably, it shall be measured according to
the nominal amount.
Government subsidies related to daily activities shall be included in other income according to the
economic business essence. Government subsidies unrelated to daily activities shall be included in
non-operating income.
Government documents clearly stipulate that government subsidies for the purchase and construction
of long-term assets or the formation of long-term assets by other means shall be recognized as
government subsidies related to assets. If the government documents do not specify the object of
subsidy, and long-term assets can be formed, the part of government subsidy corresponding to the
value of the asset shall be regarded as the government subsidy related to the asset, and the rest shall
be regarded as the government subsidy related to the income. It is difficult to distinguish between
government subsidies as a whole as government subsidies related to benefits. Government subsidies
related to assets are recognized as deferred income. The amount recognized as deferred income shall
be recorded into current profits and losses in a reasonable and systematic manner during the useful
life of the relevant asset.
Government subsidies other than those related to assets shall be recognized as government subsidies
related to earnings. If the government subsidies related to earnings are used to compensate the
relevant expenses or losses of the enterprise in the subsequent period, they shall be recognized as
deferred earnings and recorded into the current profit and loss during the period when the relevant
expenses are recognized. If it is used to compensate the relevant expenses or losses already incurred
by the enterprise, it shall be directly recorded into the current profit and loss.
If the company obtains a policy preferential loan discount interest, and the finance allocates the
discount interest funds to the lending bank, and the lending bank provides the loan to the Company
at the policy preferential interest rate, the actual amount of the loan is taken as the recorded value of
the loan, and the relevant borrowing costs are calculated according to the loan principal and the
policy preferential interest rate; If the finance directly appropriates the discount interest funds to the
Company, the Company will offset the corresponding discount interest against the relevant
borrowing costs.
2. Confirmation of government subsidies
Government grants are recognized when the conditions attached to government grants are met and
can be received. The government subsidy measured according to the amount receivable shall be
confirmed at the end of the period when there is solid evidence that it can meet the relevant
conditions stipulated in the financial support policy and is expected to receive the financial support
funds. Government subsidies other than those measured according to the amount receivable shall be
recognized when the amount of subsidies is actually received.
(XXVII) Deferred income tax assets and liabilities
1. Deferred tax assets or deferred tax liabilities are calculated and recognized based on the difference
between the carrying amount and tax base of assets and liabilities (and the difference of the carrying
amount and tax base of items not recognized as assets and liabilities but with their tax base being
able to be determined according to tax laws) and in accordance with the tax rate applicable to the
period during which the assets are expected to be recovered or the liabilities are expected to be
settled.
2. A deferred tax asset is recognized to the extent of the amount of the taxable income, which it is
most likely to obtain and which can be deducted from the deductible temporary difference. At the
balance sheet date, if there is any exact evidence that it is probable that future taxable income will be
available against which deductible temporary differences can be utilized, the deferred tax assets
unrecognized in prior periods are recognized.
3. Recognize deferred tax liabilities for taxable temporary differences related to investments in
subsidiaries and associates, unless the Company has control over the timing of the reversal of the
temporary differences and it is likely that the reversal will not occur in the foreseeable future. For
deductible temporary differences related to investments in subsidiaries and associates, deferred tax
assets are recognized when such temporary differences are likely to be reversed in the foreseeable
future and the amount of taxable income used to offset the deductible temporary differences is likely
to be obtained in the future.
(XXVIII) Leases
1. Accounting treatment of leased assets
On the commencement date of the lease term, the Company recognizes the right to use assets and
lease liabilities for leases other than short-term leases and leases of low-value assets, and recognizes
depreciation expense and interest expense, respectively, during the lease term.
The Company uses the straight-line method for each period of the lease term to charge lease
payments for short-term leases and leases for low-value assets to current expenses.
（1）Right-of-use asset
The right-of-use asset is initially measured at cost, which includes: 1) the initial measurement
amount of the lease liability; 2) the lease payments made on or before the start date of the lease term,
if there is a lease incentive, deduct the amount of the lease incentive already enjoyed ; 3) Initial
direct costs incurred by the lessee; 4) The lessee is expected to incur costs to dismantle and remove
the leased asset, restore the site where the leased asset is located, or restore the leased asset to the
state agreed upon in the lease terms
The company depreciates right-of-use assets on a straight-line basis. If it can be reasonably
determined that the ownership of the leased asset will be obtained at the expiration of the lease term,
the company shall accrue depreciation over the remaining useful life of the leased asset. If it cannot
be reasonably determined that the ownership of the leased asset can be obtained when the lease term
expires, the company shall accrue depreciation within the shorter of the lease term and the remaining
useful life of the leased asset.
In accordance with the Accounting Standards for Enterprises “ CASBE 8 - Asset Impairment”, the
company determines whether the assets used for use have been impaired and carries out accounting
treatment.
（2）Lease liability
The lease liability is initially measured at the present value of the outstanding lease payments on the
commencement date of the lease term. The lease payment amount includes: 1) the fixed payment
amount (including the substantial fixed payment amount). If there is a lease incentive, the lease
incentive related amount shall be deducted; 2) variable lease payments depending on the index or
ratio; 3) the amount expected to be paid according to the security residual value provided by the
lessee; 4) the exercise price of the purchase option, the premise is that the lessee is reasonable to
determine the exercise of the option; 5) Payment for exercising the option to terminate the lease,
provided that the lease term reflects that the lessee will exercise the option to terminate the lease;
The Company uses the lease embedded interest rate as the discount rate; If it is impossible to
reasonably determine the interest rate embedded in the lease, the incremental borrowing rate of the
Company shall be used as the discount rate. The Company calculates the interest expense of the
lease liability in each period of the lease term at a fixed periodic interest rate and records it as a
financial expense. The cyclical rate refers to the discount rate or the revised discount rate adopted by
the Company.
Variable lease payments that are not included in the measurement of lease liabilities are recorded in
current profit and loss when they are actually incurred.
If the Company changes the evaluation result of the option to renew the lease, terminate the lease or
purchase the lease, it will re-measure the lease liability according to the present value calculated by
the changed lease payment amount and the revised discount rate, and adjust the book value of the
right asset accordingly. In the event of a change in the actual lease payment, the estimated payable
amount of the guarantee residual or the variable lease payment depending on the index or ratio, the
lease liability shall be re-measured according to the present value calculated by the changed lease
payment and the original discount rate, and the carrying value of the right asset shall be adjusted
accordingly.
2. Accounting treatment of leased assets
（1）Operating lease accounting treatment
In each period of the lease term, the Company adopts the straight-line method to recognize the lease
receipts from the operating leases as rental income. The Company capitalizes the initial direct
expenses incurred in connection with the operating lease and stages them into current earnings
during the lease term on the same basis of recognition as rental income.
（2）Accounting treatment of finance lease
On the lease commencement date, the Company recognizes the difference between the sum of the
financial lease receivable, the unguaranteed residual value and its present value as unrealized
financing income, and recognizes it as lease income in each period in which the rent is received in
the future. The initial direct expenses incurred by the Company in connection with the leasing
transaction are included in the initial recorded value of the finance lease receivable.
(XXIX) Explanation of changes in major accounting policies and accounting estimates
Since the first implementation of Interpretation of Accounting Standards No. 15 in 2022, the
Company has not involved the adjustment of the financial statements at the beginning of the first
implementation year.
IV. Taxes
(I) Main taxes and tax rates
Taxes Tax bases Tax rates
The output tax shall be calculated on the basis of the sales of goods and
Value-added tax taxable service income calculated in accordance with the provisions of the 13%、6%、5%、
(VAT) tax law. After deducting the input tax allowed to be deducted in the current 3%
period, the balance shall be the VAT payable.
For housing property levied on the basis of price, housing property tax is
Housing property levied at the rate of 1.2% of the balance after deducting 30% of the cost;
1.2%、12%
tax for housing property levied on the basis of rent, housing property tax is
levied at the rate of 12% of rent revenue.
Urban
maintenance and Turnover tax payable 7%
construction tax
Education
Turnover tax payable 3%
surcharge
Local education
Turnover tax payable 2%
surcharge
Enterprise
Taxable income 15%、25%
income tax
Taxpayers Income tax rate
The Company 25%
Nanjing Putian Telege Intelligent Building Co.,
15%
Ltd
Nanjing Putian Datang Information Electronic Co.,
15%
Ltd.
Taxpayers other than the above-mentioned 25%
(II) Tax preferential policies
1. Nanjing Putian Telege Intelligent Building Co., Ltd obtained high-tech enterprise certificate in
November, 2021, valid for 3 years. From 2021 to 2023, the enterprise income tax shall be paid at the
reduced tax rate of 15%.
2. The subsidiary, Nanjing Putian Datang Information Electronic Co., Ltd., obtained high-tech
enterprise certificate in November, 2021, valid for 3 years. From 2021 to 2023, the enterprise
income tax shall be paid at the reduced tax rate of 15%.
3. The subsidiaries, Nanjing Putian Datang Information Electronic Co., Ltd. awere certified as
software enterprises, and some of the software products produced by Nanjing South
Telecommunications Company Limited and Nanjing Putian Network Co., Ltd. are entitled to enjoy
the preferential tax policy of VAT refund upon collection in accordance with the provisions of Cai
Shui [2011] No.100.
V. Notes to items of consolidated financial statements
1. Cash and bank balances
Items Closing balance Opening balance
Cash on hand 343.39
Cash in bank 111,078,777.09 140,310,024.05
Deposit money with finance company 53,098,903.02 24,074,373.95
Other cash and bank balances 14,113,164.10 9,479,083.96
Total 178,290,844.21 173,863,825.35
Details of other cash and bank balances
Items Closing balance Opening balance
Deposit for L/G 9,744,312.73 6,779,083.96
Frozen funds 4,368,851.37 2,700,000.00
Total 14,113,164.10 9,479,083.96
Note: Other cash and bank balances are restricted funds.
2. Notes receivable
(1) Categories
Items Closing balance Opening balance
Bank acceptance 2,222,820.00
Trade acceptance 24,728,859.51 26,807,458.99
Less: Provision for bad debts 24,728,859.51 29,030,278.99
Total 23,492,416.53 27,689,906.04
（2）Notes receivable that have been endorsed or discounted at the end of the period and are not yet
due on the balance sheet date
The confirmation amount shall The confirmation amount
Items be terminated at the end of the has not been terminated at
period the end of the period
Bank acceptance 28,234,158.30
Trade acceptance 17,640,802.92
Total 45,874,961.22
(3) Provision for bad debts of notes receivable
Closing balance
Book balance Provision for bad debts
Categories
Provision Carrying amount
Amount % to total Amount proportion
(%)
Note receivable with bad debt
24,728,859.51 100.00 1,236,442.98 5.00 23,492,416.53
provision accrued on portfolio
Portfolio 1: trade acceptance bill 24,728,859.51 100.00 1,236,442.98 5.00 23,492,416.53
Total 24,728,859.51 —— 1,236,442.98 5.00 23,492,416.53
Opening balance
Categories Book balance Provision for bad debts
Provision proportion Carrying amount
Amount % to total Amount
(%)
Note receivable with bad debt
29,030,278.99 100.00 1,340,372.95 4.62 27,689,906.04
provision accrued on portfolio
Portfolio 1: bank acceptance
26,807,458.99 92.34 1,340,372.95 5.00 25,467,086.04
bill
Portfolio 2: trade acceptance
2,222,820.00 7.66 2,222,820.00
bill
Total 29,030,278.99 —— 1,340,372.95 4.62 27,689,906.04
1）Notes receivable with bad debt provision in combination
Closing balance
Items
Book balance Provision for bad debts Provision proportion (%)
Trade acceptance 24,728,859.51 1,236,442.98 5.00
Bank acceptance ——
Total 24,728,859.51 1,236,442.98 ——
(Continued)
Opening balance
Items Provision for bad
Book balance Provision proportion (%)
debts
Trade acceptance 26,807,458.99 1,340,372.95 5.00
Bank acceptance 2,222,820.00
Total 29,030,278.99 1,340,372.95 ——
(3) Bad debt provisions for notes receivable accrual, recovered or reversed in the current period
Changes in the current period
Opening Closing
Items Write-
balance Accrual Recovery Others balance
off
Changes in the current period
Opening Closing
Items Write-
balance Accrual Recovery Others balance
off
Receivables with provision made
on an individual basis
Receivables with provision for
bad debts made on a collective 1,340,372.95 -103,929.97 1,236,442.98
basis
Trade acceptance 1,340,372.95 -103,929.97 1,236,442.98
Total 1,340,372.95 -103,929.97 1,236,442.98
3. Accounts receivable
(1) Disclosure according to aging
Ages Closing balance Opening balance
Within 1 year 203,810,673.21 185,688,715.74
1 to 2 years 55,260,839.75 58,022,885.76
2 to 3 years 29,870,212.97 30,502,728.20
3 to 4 years 20,763,649.56 34,953,804.10
4 to 5 years 23,809,632.03 60,019,462.10
Over 5 years 166,215,013.08 129,317,629.98
Less: Allowance for doubtful accounts 193,889,013.84
198,111,661.33
Total 301,618,359.27 304,616,212.04
(2) According to the bad debt calculation and withdrawal method classification disclosure
Closing balance
Book balance Provision for bad debts
Categories
Provision
Amount % to total Amount proportion
(%)
Receivables with provision made on an
76,074,296.15 15.22 76,074,296.15 100.00
individual basis
Receivables with provision made on a
423,655,724.45 84.78 122,037,365.18 28.81
collective basis
Aging combination 423,655,724.45 84.78 122,037,365.18 28.81
Total 499,730,020.60 100.00 198,111,661.33 39.64
Opening balance
Book balance Provision for bad debts
Categories
Provision
Amount % to total Amount proportion
(%)
Receivables with provision made on an
75,571,063.55 15.16 75,571,063.55 100.00
individual basis
Receivables with provision made on a
422,934,162.33 84.84 118,317,950.29 27.98
collective basis
Opening balance
Book balance Provision for bad debts
Categories
Provision
Amount % to total Amount proportion
(%)
Aging combination 422,934,162.33 84.84 118,317,950.29 27.98
Total 498,505,225.88 100.00 193,889,013.84 38.89
1）Accounts receivable with provision made on an individual basis
Provision for bad Provision
Debtors Book balance Reasons
debts proportion (%)
Unable to
Dongpo Xi Laos Co., Ltd. 19,708,086.54 19,708,086.54 100.00
recover
Unable to
Mr. Xu 17,591,683.74 17,591,683.74 100.00
recover
Unable to
China Tower Corporation Ltd. 13,819,926.92 13,819,926.92 100
recover
Unable to
Putian Information Technology Co. LTD 6,065,598.36 6,065,598.36 100
recover
Unable to
Ningbo Tianan Group switch Co., LTD 4,419,126.70 4,419,126.70 100
recover
Unable to
Other 14,469,873.89 14,469,873.89 100
recover
Total 76,074,296.15 76,074,296.15
2）Accounts receivable with provision made on an collective basis
① Aging combination
Closing balance Opening balance
Ages Provision for bad Provision Provision for bad Provision
Book balance Book balance
debts proportion (%) debts proportion (%)
Within 1
203,810,673.21 2,038,106.74 1.00 185,668,485.74 1,856,684.86 1.00
year
1 to 2
55,217,219.25 2,760,860.96 5.00 58,022,885.76 2,901,144.29 5.00
years
2 to 3
29,835,462.97 2,983,546.30 10.00 26,585,163.67 2,658,516.37 10.00
years
3 to 4
14,229,702.18 4,268,910.65 30.00 34,953,804.10 10,486,141.24 30.00
years
4 to 5
21,153,452.63 10,576,726.32 50.00 34,576,719.05 17,288,359.53 50.00
years
Over 5
99,409,214.21 99,409,214.21 100.00 83,127,104.01 83,127,104.01 100.00
years
Total 423,655,724.45 122,037,365.18 28.81 422,934,162.33 118,317,950.29 27.98
(3) Bad debt provision
Change in current period
Opening
Categories Write- Other Closing balance
balance Accrual Recovery
off changes
Receivables with
provision made on an 75,571,063.55 8,975,296.51 3,413,067.60 -5,058,996.31 76,074,296.15
individual basis
Receivables with
118,317,950.29 5,271,612.34 -1,552,197.45 122,037,365.18
provision made on a
Change in current period
Opening
Categories Write- Other Closing balance
balance Accrual Recovery
off changes
collective basis
Total 193,889,013.84 14,246,908.85 3,413,067.60 - -6,611,193.76 198,111,661.33
Current significant accounts receivable bad debt reserve transfer or recovery situation
The basis and rationality
Book Recovery of determining the ratio
Debtors Turn back cause
balance mode of the original bad debt
reserve
China Railway The account age is long,
Communication Signal Proceeds from sales of previous collect and it is difficult to collect
1,748,190.05
Shanghai Engineering years are recovered in this period payment and reconcile the
Group Co., LTD account
The account age is long,
China Telecom Group Proceeds from sales of previous collect and it is difficult to collect
1,664,877.55
Limited Henan branch years are recovered in this period payment and reconcile the
account
Total 3,413,067.60
(4) Details of the top 5 debtors with largest balances
Proportion to the total balance of Provision for bad
Debtors Book balance
accounts receivable (%) debts
Dongpo Xi Laos Co., Ltd. 19,708,086.54 3.94 19,708,086.54
Mr. Xu 17,591,683.74 3.52 17,591,683.74
China Tower Corporation Ltd. 13,819,926.92 2.77 13,819,926.92
Henan Branch of China United Network
8,828,589.22 1.77 8,828,589.22
Communication Co., Ltd.
Shanghai Potevio Co., Ltd. 8,755,534.00 1.76 8,755,534.00
Total 68,703,820.42 13.78 68,703,820.42
Proportion to the total balance of accounts Provision for bad
Debtors Book balance
receivable (%) debts
Dongpo Xi Laos Co., Ltd. 19,708,086.54 3.94 19,708,086.54
Mr. Xu 17,591,683.74 3.52 17,591,683.74
China Tower Corporation Ltd. 13,819,926.92 2.77 13,819,926.92
CHINA RAILWAY 11TH BUREAU
GROUP CORPORATION 10,768,588.51 2.15 272,240.49
LIMITED
NANJING LES INFORMATION
8,865,266.00 1.77 88,652.66
TECHNOLOGY CO., LTD
合计 70,753,551.71 14.15 51,480,590.35
4. Receivables financing
Items Closing balance Opening balance
Notes receivable (Bank acceptance) 32,347,277.62 30,668,999.36
5. Advances paid
(1) Age analysis
Closing balance Opening balance
Ages
Amount % to total Amount % to total
Within 1 year 5,870,068.98 57.64 6,186,930.98 32.42
1-2 years 409,519.84 4.02 8,653,927.80 45.35
2-3 years 794,780.12 7.80 746,082.95 3.91
Over 3 years 3,110,314.80 30.54 3,494,882.49 18.32
Total 10,184,683.74 100.00 19,081,824.22 100.00
(2) Details of the top 5 debtors with largest balances
Proportion to the total
Debtors Closing balance balance of advances
paid (%)
Zhengzhou Hounuo Information Technology Co., LTD 1,928,391.40 18.93
Shenzhen Chuangxian photoelectric Co., LTD 1,120,000.00 11.00
Rizhao Star Information Technology Co., LTD 313,987.81 3.08
Ningbo Gete electronic Technology Co., LTD 207,964.60 2.04
Nanjing Wenhui film and television equipment Co., LTD 196,387.93 1.93
Total 3,766,731.74 36.98
6. Other receivable
Items Closing balance Opening balance
Other receivables 50,680,676.82 56,070,287.57
Less: Allowance for doubtful accounts 42,577,655.38 44,353,986.38
Total 8,103,021.44 11,716,301.19
（1）Other receivables categorized by nature
Categories Closing balance Opening balance
Provisional payment receivable 38,355,242.94 39,559,820.38
Deposit 10,413,472.88 13,816,308.52
Travel allowance 444,303.97 608,332.22
Other 1,467,657.03 2,085,826.45
Less: Allowance for doubtful accounts 50,680,676.82 44,353,986.38
Total 42,577,655.38 11,716,301.19
（2）Age analysis
Ages Closing balance Opening balance
Within 1 year 4,826,760.69 8,928,722.74
1 to 2 years 3,553,362.18 3,081,096.07
2 to 3 years 1,800,397.30 2,504,630.82
3 to 4 years 1,735,195.43 2,686,896.37
4 to 5 years 2,500,896.37 3,120,558.40
Over 5 years 36,264,064.85 35,748,383.17
Less: Allowance for doubtful accounts 42,577,655.38 44,353,986.38
Total 8,103,021.44 11,716,301.19
（3）Changes in provision for bad debts
Phase I Phase II Phase III
Items Total
12-month expected Lifetime expected credit Lifetime expected credit
credit losses losses (credit not impaired) losses (credit impaired)
Opening balance 12,259,677.83 32,094,308.55 44,353,986.38
Opening balance in the
12,259,677.83 32,094,308.55 44,353,986.38
current period
--Transferred to phase
II
--Transferred to phase
III
--Reversed to phase II
--Reversed to phase I
Provision made in the
-1,739,097.39 21,306.39 -1,717,791.00
current period
Provision recovered in
current period
Provision written off in
46,540.00 46,540.00
current period
Other changes -12,000.00 -12,000.00
Closing balance 10,474,040.44 32,103,614.94 42,577,655.38
（4）Bad debt provision
Change in current period
Opening Closing
Categories To withdraw or turn Cancel after
balance Accrual Other changes balance
back verification
Provision for
44,353,986.38 -1,717,791.00 46,540.00 -12,000.00 42,577,655.38
bad debts
（5）Details of the top 5 debtors with largest balances
Proportion to
Nature of Closing the total Provision for
Debtors Ages
receivables balance balance of other bad debts
receivables (%)
Beijing Likangpu Temporary
Communication payment 28,912,122.71 Over 5 years 57.05 28,912,122.71
Equipment Co., Ltd. receivable
Nanjing Putian Within 1
Security
Communication 1,125,520.04 year650,000.00，1- 2.22 1,125,520.04
deposit
Technology Co., LTD 2year 475,520.04
Nanjing Putian Temporary
4-5year 179,184.19，
Communication Industry payment 805,545.63 1.59 805,545.63
Co., Ltd. receivable Over5 years626,361.44
Beijing Lekang Property Security
295,503.81 Within 1 year 0.58 14,775.19
Management Co., LTD deposit
Deposit
China International and
287,905.44 Within 1 year 0.57 14,395.27
Tendering Co., LTD advance
payment
Total 31,426,597.63 —— 62.01 30,872,358.84
7. Inventories
(1) Details
Closing balance Opening balance
Items Provision for Carrying Provision for
Book balance Book balance Carrying amount
write-down amount write-down
Raw
material 24,355,064.85 10,860,838.19 13,494,226.66 27,176,586.65 11,431,889.29 15,744,697.36
s
Work in
5,436,730.59 2,660,490.69 2,776,239.90 6,222,900.12 2,797,339.41 3,425,560.71
process
Goods
84,241,370.76 44,673,371.62 39,567,999.14 102,664,462.27 41,363,720.25 61,300,742.02
on hand
Goods
dispatch 124,160,523.31 58,109,826.28 66,050,697.03 145,488,617.47 59,779,466.22 85,709,151.25
ed
Products
on
consign 1,614,307.52 804,691.99 809,615.53 1,064,779.21 804,691.99 260,087.22
ment for
sales
Total 239,807,997.03 117,109,218.77 122,698,778.26 282,617,345.72 116,177,107.16 166,440,238.56
(2) The increase or decrease of the inventory decline reserve and the impairment reserve of contract
performance cost
Increase amount in the Decrease amount in the
current period current period Closing
Items Opening balance
Reversal or balance
Accrual Others Others
write-off
Raw materials 11,431,889.29 578,431.26 1,149,482.36 10,860,838.19
Work in
2,797,339.41 -136,848.72 2,660,490.69
process
Increase amount in the Decrease amount in the
current period current period Closing
Items Opening balance
Reversal or balance
Accrual Others Others
write-off
Goods on
41,363,720.25 3,955,848.33 114,375.20 531,821.76 44,673,371.62
hand
Goods
59,779,466.22 538,480.82 905,299.32 1,302,821.44 58,109,826.28
dispatched
Products on
consignment 804,691.99 804,691.99
for sales
Total 116,177,107.16 4,935,911.69 2,169,156.88 1,834,643.20 117,109,218.77
The specific basis for determining the net realizable value and the reasons for turning back or selling
the inventory depreciation reserve in the current period.
Reasons for the reversal of Reasons for the provision for
Specific basis for determining net realizable
Item inventory depreciation provisions depreciation of inventory sold
value
in the current period in the current period
Net realizable value is determined by the During the current period,
The net realizable value of
estimated selling price of the relevant finished the inventory that was set
inventories for which provision was
Raw materials products less the estimated costs to be aside for inventory
made for inventory depreciation in
incurred to completion, estimated sales depreciation at the beginning
previous periods increased
expenses and relevant taxes of the period has been sold
The net realizable value of the inventory is The net realizable value of During the current period,
determined by the estimated selling price of inventories, which has been the inventory that was set
Goods
the inventory less estimated selling expenses provided for the decline of aside for inventory
dispatched
and related taxes in the normal course of inventories in previous periods, depreciation at the beginning
production and operation increased of the period has been sold
The net realizable value of the inventory is During the current period,
The net realizable value of
determined by the estimated selling price the inventory that was set
inventories for which provision was
Goods on hand minus the estimated selling expenses and aside for inventory
made for inventory depreciation in
relevant taxes in the normal course of depreciation at the beginning
previous periods increased
production and operation of the period has been sold
8. Other current assets
Items Closing balance Opening balance
Input tax to be deducted 3,349,668.12 3,432,231.67
Advance payment of income tax 141,091.78
Total 3,490,759.90 3,432,231.67
9. Long-term equity investments
Increase/Decrease
Investment Closing
Opening Adjustment in Cash Closing balance of
Investees income Changes
balance Investments Investments other dividend/Profit Provision for balance provision for
recognized in other Others
increased decreased comprehensive declared for impairment impairment
under equity equity
income distribution
method
I. Subsidiary 1,294,510.00 1,294,510.00 1,294,510.00
Nanjing Putian
1,294,510.00 1,294,510.00 1,294,510.00
Hotel Co., Ltd.
II. Joint ventures -9,632.66
SEI-Nanjing
Putian Optical
10,422,321.80 -9,632.66 10,422,321.80
Network Co.,
Ltd.
Total 10,422,193.15 -9,632.66 1,294,510.00 1,294,510.00 11,716,831.80 1,294,510.00
10. Other equity instrument investments
The reason
designated as
Amount of
measurement Other
other
at fair value comprehensi
Dividen The comprehensi
Closing Opening The cumulative and its ve income is
Items d cumulativ ve income
balance balance income e gains
loss
transferred to
change transferred to
included in retained
retained
other earnings
earnings
comprehensi
ve income
Nanjing
Yuhua
420,915.00 420,915.00
Electroplating
Factory
Hangzhou
Honyar
321,038.00 321,038.00
Electrical
Co.,Ltd.
Beijing
Likong
Communicati
on Equipment
Co., Ltd.
Total 741,953.00 741,953.00
Note: The investment in Nanjing Yuhua Electroplating Factory, Hangzhou Honyar Electrical Co.,Ltd. and Beijing
Likong Communication Equipment Co., Ltd. are classified as other equity instrument investments, the Company
measured it at fair value through other comprehensive income.
11. Investment property
(1) Investment real estate measured at cost
Items Buildings and structures Total
I.Original book value
1. Opening balance 40,129,313.41 40,129,313.41
2. Increase
(1) External purchase
(2) Transfer of fixed assets
3. Decrease
(1) Disposal
(2) Other transfer out
4. Closing balance 40,129,313.41 40,129,313.41
II.Accumulated depreciation and amortization
1. Opening balance 19,778,073.38 19,778,073.38
2. Increase 1,224,161.28 1,224,161.28
(1) Accrual or amortization 1,224,161.28 1,224,161.28
(2) Transfer of fixed assets
Items Buildings and structures Total
3. Decrease
(1) Disposal
(2) other transfer out
4. Closing balance 21,002,234.66 21,002,234.66
III,Provision for impairment
IV.Carrying amount
1. Closing balance 19,127,078.75 19,127,078.75
2. Opening balance 20,351,240.03 20,351,240.03
12. Fixed assets
Categories Closing balance Opening balance
Fixed assets 94,480,062.75 98,643,676.71
Liquidation of fixed assets
Less: Impairment provision 725,962.56 725,962.56
Total 93,754,100.19 97,917,714.15
(1) Fixed assets
1）Details
Buildings and Machinery Electronic Transport Other
Items Total
structures equipment equipment facilities equipment
I. Original book value
1. Opening
122,417,144.93 45,316,591.74 23,002,008.74 3,888,742.90 17,542,315.66 212,166,803.97
balance
2. Increase 2,806,727.42 258,054.41 277,048.68 160,357.93 3,502,188.44
(1) Acquisition 2,806,727.42 258,054.41 277,048.68 160,357.93 3,502,188.44
(2) Transfer of
projects under
construction
(3) Others
3. Decrease 586,802.28 156,807.22 1,509,989.94 800,331.30 179,046.24 3,232,976.98
(1) Disposal or
586,802.28 156,807.22 1,509,989.94 800,331.30 179,046.24 3,232,976.98
scrapping
(2) Transfer into
investment real estate
(3) Others
(4) Changes in the
scope of
consolidation
4. Closing balance 121,830,342.65 47,966,511.94 21,750,073.21 3,365,460.28 17,523,627.35 212,436,015.43
II.Accumulated
depreciation
1. Opening balance 48,456,225.13 26,920,074.59 18,316,990.42 3,564,933.91 16,264,903.21 113,523,127.26
2. Increase 4,288,224.90 1,569,590.92 1,042,033.01 97,592.41 234,600.19 7,232,041.43
Buildings and Machinery Electronic Transport Other
Items Total
structures equipment equipment facilities equipment
（1）Accrual 4,288,224.90 1,569,590.92 1,042,033.01 97,592.41 234,600.19 7,232,041.43
（2）Others
3. Decrease 484,263.91 149,012.85 1,467,066.34 532,511.43 166,361.48 2,799,216.01
(1)
484,263.91 149,012.85 1,467,066.34 532,511.43 166,361.48 2,799,216.01
Disposal/Scrapping
（2）Transfer to
investment real estate
（3）Others
（4）Change in
consolidation scope
4. Closing balance 52,260,186.12 28,340,652.66 17,891,957.09 3,130,014.89 16,333,141.92 117,955,952.68
III.Provision for
impairment
1. Opening balance 539,124.00 11,550.65 175,287.91 725,962.56
2. Increase
（1）Accrual
（2）Others
3. Decrease
（1）
Disposal/Scrapping
（2）Others
4. Closing balance 539,124.00 11,550.65 175,287.91 725,962.56
IV. Carrying amount
1. Closing balance 69,031,032.53 19,614,308.63 3,858,116.12 235,445.39 1,015,197.52 93,754,100.19
2. Opening balance 73,421,795.80 18,384,966.50 4,685,018.32 323,808.99 1,102,124.54 97,917,714.15
2）Fixed assets temporarily idle
Original book Accumulated Provision for Carrying
Items Remarks
value depreciation impairment amount
Machinery equipment 219,385.00 202,981.30 11,550.65 4,853.05
Electronic equipment 36,000.00 34,920.00 1,080.00
Other equipment 342,985.18 157,407.73 175,287.91 10,289.54
Total 598,370.18 395,309.03 186,838.56 16,222.59
3）Fixed assets leased under operating leases as of December 31, 2023
Items Carrying amount
Buildings and structures 12,414,346.21
4）Fixed assets with certificate of titles being unsettled
Items Carrying amount Reasons for unsettlement
Buildings and structures 33,937,794.59 In process
13. Construction in progress
Categories Closing balance Opening balance
Construction in progress project 5,906.53
Engineering materials
Less: Impairment provision
Total 5,906.53
1. Projects under construction
(1) Basic information of construction projects in progress
Closing balance Opening balance
Items Provision Provision
Book Carrying Book Carrying
for for
balance amount balance amount
impairment impairment
Renewal and transformation 5,906.53 5,906.53
14. Intangible assets
(1) Details
Items Software Land use right Total
I. Original book value
1. Opening balance 12,131,153.63 26,656,046.83 38,787,200.46
2. Increase 51,262.44 51,262.44
（1）Acquisition 51,262.44 51,262.44
3. Decrease 588,965.52 588,965.52
（1）Disposal 588,965.52 588,965.52
4. Closing balance 11,593,450.55 26,656,046.83 38,249,497.38
II.Accumulated depreciation
1. Opening balance 10,512,343.86 7,781,392.84 18,293,736.70
2. Increase 277,565.07 634,289.62 911,854.69
（1）Acquisition 226,302.63 634,289.62 860,592.25
（2）other 51,262.44 51,262.44
3. Decrease 588,965.52 588,965.52
（1）Disposal 588,965.52 588,965.52
4. Closing balance 10,200,943.41 8,415,682.46 18,616,625.87
III. Carrying amount
1. Closing balance 1,392,507.14 18,240,364.37 19,632,871.51
2. Opening balance 1,618,809.77 18,874,653.99 20,493,463.76
15. Long-term prepayments
Items Opening balance Increase Amortization Other decrease Closing balance
Renovation expenditure 3,953,824.45 220,616.00 1,874,667.27 2,299,773.18
16. Deferred tax assets and deferred tax liabilities
(1) Details of unrecognized deferred tax assets
Items Closing balance Opening balance
Deductible temporary difference 361,055,451.02 357,780,952.89
Deductible losses 250,920,070.63 297,743,081.95
Total 611,975,521.65 655,524,034.84
(2) Maturity years of deductible losses of unrecognized deferred tax assets
Maturity years Closing balance Opening balance Remarks
Year 2023 4,729,689.33
Year 2024 105,985,653.23 125,729,965.87
Year 2025 3,031,582.45
Year 2026 67,207,331.67 93,920,899.53
Year 2027 55,359,032.59 56,365,467.02
Year 2029 10,349,408.51 197,690.62
Year 2030 1,622,476.49 1,622,476.49
Year 2031 1,188,328.53 1,188,328.53
Year 2032 9,791,047.64 10,250,907.64
Year 2033 3,128,208.76 3,737,656.92
Total 258,001,091.82 297,743,081.95
17. Other non-current assets
Items Closing balance Opening balance
Long-term asset purchase 40,899.00
18. Assets with limited ownership or use rights
Closing balance Opening balance
Items
Book balance Book value Restricted type Restricted case Book balance Book value Restricted type Restricted case
Involving litigation bank
Other cash Involving litigation bank freeze
Involving litigation bank freeze 4,368,851.37， Involving litigation bank
and bank 14,113,164.10 14,113,164.10 9,479,083.96 9,479,083.96 2,700,000.00，Guarantee
freeze、Guarantee deposit Guarantee deposit freeze、Guarantee deposit
balances deposit 6,779,083.96
9,744,312.73
Fixed Property and land mortgage Property and land Property and land mortgage Property and land mortgage
37,958,367.23 23,546,470.68 37,958,367.23 24,947,499.64
assets loans mortgage loans loans loans
Intangible Property and land mortgage Property and land Property and land mortgage Property and land mortgage
5,033,207.40 3,344,930.14 5,033,207.40 1,568,556.10
assets loans mortgage loans loans loans
Total 57,104,738.73 41,004,564.92 52,470,658.59 35,995,139.70 --
Other instructions： We remind users of financial statements that, apart from the above assets with title or use right restrictions, in order to entrust the parent company to apply for
loans from Bank of Beijing, Jiangning Sub-branch, the Company pledged its holding equities to the parent company, which include equity of Nanjing South Telecommunications Co Ltd.
33.17 million yuan(96.99% shares of stock equity), equity of Nanjing Putian Telege Intelligent Building Co., Ltd. 4.80 million yuan(40% shares of stock equity), equity of Nanjing
Putian Changle Telecommunications Equipment Co., Ltd. 5.07 million yuan(50.7% shares of stock equity), equity of Nanjing Putian Network Co., Ltd. 7.80 million yuan(78% shares of
stock equity), equity of Nanjing Mennekes Electric Co., Ltd. 41.14 million yuan (100% shares of stock equity ). The Company has registered the equity pledge at Nanjing Jiangning
Market Supervision Administration. Those equities are with use restrictions before released.
19. Short-term borrowings
(1) Details
Borrowing conditions Closing balance Opening balance
Pledged borrowings 50,000,000.00
Mortgaged borrowings 16,015,446.08 32,800,000.00
Secured borrowings 30,036,727.77
credit borrowings 53,847,877.85
Total 69,863,323.93 112,836,727.77
20.Notes payable
Items Closing balance Opening balance
Banker's acceptance 7,885,557.80
Total 7,885,557.80
21.Accounts payable
(1) Classified by account age
Items Closing balance Opening balance
Within 1 year (including 1 year) 261,624,545.57 291,414,050.48
More than 1 year 135,969,220.70 179,453,232.59
Total 397,593,766.27 470,867,283.07
(2) Significant accounts payable with age over one year
Name of creditor Closing balance Reasons for unsettlement
Material payment/According to the contract
SEI-Nanjing Putian Optical Network Co., Ltd. 20,568,725.66
schedule, both parties have not settled
Material payment/According to the contract
Potevio Company Limited 14,918,045.42
schedule, both parties have not settled
Nanjing Xingping Industry Co., Ltd. 8,927,226.06 Not yet settled
Material payment/According to the contract
Xi'an Huasheng Communication Co., Ltd. 3,397,858.77
schedule, both parties have not settled
Total 47,811,855.91
22.Advances received
Items Closing balance Opening balance
Within 1 year (including 1 year) 452,216.54 240,585.08
More than 1 year
Total 452,216.54 240,585.08
23.Contract liabilities
Items Closing balance Opening balance
Payment for goods 16,720,781.30 15,048,811.36
1. Significant contract liabilities older than 1 year
Name of creditor Opening balance Reasons for unsettlement
China Putian Information Industry
3,672,363.25 Not yet settled
Co. LTD
24.Employee benefits payable
(1) Details
Opening Closing
Items Increase Decrease
balance balance
Short-term employee benefits 17,473,887.86 135,281,538.08 134,984,058.57 17,771,367.37
Post-employment benefits - defined
20,667,231.63 20,667,231.63
contribution plan
Dismissal welfare 8,672,717.62 8,672,717.62
Total 17,473,887.86 164,621,487.33 164,324,007.82 17,771,367.37
(2) Details of short-term employee benefits
Opening Closing
Items Increase Decrease
balance balance
Wage, bonus, allowance and subsidy 3,625,349.25 101,177,180.70 101,177,180.70 3,625,349.25
Employee welfare fund 7,719,342.21 7,719,342.21
Social insurance premium 8,577,558.72 8,577,558.72
Including: Medicare premium 7,468,350.59 7,468,350.59
Occupational injuries premium 506,380.33 506,380.33
Maternity premium 602,827.80 602,827.80
Others
Housing provident fund 3,216,865.05 9,543,902.39 9,543,902.39 3,216,865.05
Trade union fund and employee 10,616,677.03 836,398.69 538,919.18 10,914,156.54
education fund
Others 14,996.53 7,427,155.37 7,427,155.37 14,996.53
Total 17,473,887.86 135,281,538.08 134,984,058.57 17,771,367.37
(3) Details of defined contribution plan
Opening
Items Increase Decrease Closing balance
balance
Basic endowment insurance premium 19,490,529.41 19,490,529.41
Unemployment insurance premium 785,947.72 785,947.72
Company annuity payment 390,754.50 390,754.50
Total 20,667,231.63 20,667,231.63
25.Taxes payable
Items Closing balance Opening balance
VAT 2,627,413.82 3,347,506.52
Enterprise income tax 2,064,588.36 2,752,400.75
Individual income tax 155,936.50 185,396.12
Urban maintenance and construction tax 212,899.11 411,899.55
Housing property tax 278,347.94 265,078.20
Land use tax 76,065.10 76,065.10
Education surcharge&local education
149,928.29 292,071.40
surcharge
Other tax 65,813.19 60,103.57
Total 5,630,992.31 7,390,521.21
26.Other payables
Items Closing balance Opening balance
Dividend payable 5,692,213.38 1,692,213.38
Other payables 41,427,529.15 57,514,067.70
Total 47,119,742.53 59,206,281.08
(1) Dividend payable
Items Closing balance Opening balance
Dividend of ordinary shares 5,692,213.38 1,692,213.38
(2) Other payables
1）Classification by nature of funds
Items Closing balance Opening balance
Temporary receipts payable 32,498,657.42 34,476,014.33
Unsettled installation cost 231,627.19 8,160,449.74
Deposits 2,904,038.29 6,273,154.05
Operating expenses 4,891,257.87 7,860,725.92
Others 901,948.38 743,723.66
Total 41,427,529.15 57,514,067.70
27.Other current liabilities
Items Closing balance Opening balance
VAT collected in advance 1,595,107.01 1,691,302.29
28.Long-term borrowings
Interest rate
Items Closing balance Opening balance
range
Pledged borrowings 176,011,976.11 105,800,000.00 3.75%-4.05%
29.Share capital
Movements
accumulation
Opening Issue fund
Items Bouns Closing balance
balance of new Reserve Others Subtotal
shares
shares transferred to
shares
Total shares 215,000,000.00 215,000,000.00
30.Capital reserve
Items Opening balance Increase Decrease Closing balance
Share premium 137,786,640.63 137,786,640.63
Other capital reserve 59,311,274.77 59,311,274.77
Total 197,097,915.40 197,097,915.40
31.Other comprehensive income (OCI)
Current period cumulative
Less: Other
Less: Other
comprehensive
Current period comprehensive Closing
Items Opening balance income recorded in Attributable to
cumulative income in the Less: Attributable to balance
the previous period non-controllin g
before income previous period is Income tax parent company
is transferred to shareholders
tax transferred to
retained income in
profit and loss
the current period
Other comprehensive income reclassified
-1,854,910.00 -1,854,910.00
into profit and loss
Including: The amount of financial assets
reclassified into other comprehensive -1,854,910.00 -1,854,910.00
income
Total -1,854,910.00 -1,854,910.00
32.Surplus reserve
Items Opening balance Increase Decrease Closing balance
Statutory surplus reserve 589,559.77 589,559.77
33.Undistributed profit
Preceding period
Items Current period cumulative
comparative
Balance before adjustment at the end of preceding period -388,837,228.89 -341,446,683.34
Add: Increase due to adjustment (or less: decrease)
Opening balance after adjustment -388,837,228.89 -341,446,683.34
Add: Net profit attributable to owners of the parent
-16,884,077.62 -47,390,545.55
company
Less: Appropriation of statutory surplus reserve
Withdraw arbitrary surplus reserve
Dividend payable on ordinary shares
Common stock dividends converted into capital
stock
Closing balance -405,721,306.51 -388,837,228.89
34.Operating revenue/Operating cost
(1) Details
Current period cumulative Preceding period comparative
Items
Revenue Cost Revenue Cost
I.Main operations 800,975,953.86 610,233,982.27 862,124,004.15 686,483,649.52
II.Other operations 17,358,420.44 9,451,126.40 17,442,044.81 12,123,980.90
Total 818,334,374.30 619,685,108.67 879,566,048.96 698,607,630.42
(2) Statement of operating income deduction
Specific
Items Current Year Specific deduction Previous year
deduction
Amount of operating income 818,334,374.30 879,566,048.96
Total amount of business income deduction items 14,689,596.38 10,866,001.57
Proportion of the total amount of deductible items in the operating revenue (%) 1.80% / 1.24% /
I. Business income unrelated to main business
The income from housing rental and
water and electricity of 9,149,896.78
1. Income from other businesses other than normal operations. For example, income from
yuan. Materials sales
leasing fixed assets, intangible assets and packaging, selling materials, exchanging non-
revenue5,408,004.19yuan.,
monetary assets with materials, operating entrusted management business, etc., as well as 14,689,596.38 10,866,001.57
Software service revenue
income that is included in the main business income but is outside the normal operation of
19,892.93yuan, Scrap revenue
the listed company.
47,820.18yuan, Non-rental income
63,982.30yuan.
II. Income without commercial substance
III. Other income that has nothing to do with the main business or has no commercial
substance
Amount after deduction of operating income 803,644,777.92 868,700,047.39
- 74 -
(3) Operating income, operating cost breakdown information
Income classification Revenue Cost
By business type 818,334,374.30 879,566,048.96
Communication industry 717,049,035.96 788,478,840.69
Electrical industry 101,285,338.34 91,087,208.27
By sales channel 818,334,374.30 879,566,048.96
Direct selling 477,217,979.91 464,411,292.37
distribution 341,116,394.39 415,154,756.59
Total 818,334,374.30 879,566,048.96
(4) Description of performance obligations
The amount that The type of
The nature of Whether it
the company is quality assurance
Meet the goods the is the
Important payment responsible for is provided by the
Projects performance company principal
terms expected to be company and
obligations promises to responsible
refunded to the related
transfer person
customer obligations
Customers Pay in installments
Selling video Video
accept items according to the Warranty Period
conferencing conferencing is There is no
or sign for time node agreed in Warranty
products Products
merchandise the contract
Sales of Pay in installments
Customers Integrated
integrated according to the Warranty Period
sign for cabling is There is no
wiring time node agreed in Warranty
merchandise products
products the contract
Pay in installments
Sales of smart Customers Smart
according to the Warranty Period
electrical sign for Electrical is There is no
time node agreed in Warranty
products merchandise Products
the contract
Pay in installments
Engineering Follow the Integrated
according to the Warranty Period
construction performance cabling is There is no
time node agreed in Warranty
provided schedule products
the contract
Pay in installments
Provide Follow the Maintenance
according to the
maintenance performance and other is There is no There is no
time node agreed in
services schedule services
the contract
(4) Description of apportionment to remaining performance obligations
The amount of income corresponding to the performance obligations that have been signed but not yet
performed or completed at the end of this report is 20,400.57 million yuan, of which 16,974.48 million yuan is
expected to be recognized in 2024; 34,260,900 yuan is expected to be recognized in 2025.
35.Taxes and surcharges
Preceding period
Items Current period cumulative
comparative
Urban maintenance and construction tax 1,634,769.84 1,616,471.39
Education surcharge&local education surcharge 1,167,392.69 1,154,331.76
- 75 -
Preceding period
Items Current period cumulative
comparative
Housing property tax 1,708,445.30 1,226,460.58
Land use tax 458,287.96 472,310.06
Other tax 581,646.77 431,367.74
Total 5,550,542.56 4,900,941.53
36.Selling expenses
Preceding period
Items Current period cumulative
comparative
Employee benefits 51,975,577.69 51,675,564.01
Business entertainment 9,234,928.54 8,102,994.12
Travelling expenses 5,145,939.14 3,495,888.41
Office expenses 3,496,071.29 2,327,400.49
Sales service charges 1,779,263.54 4,273,777.24
Conference expenses 564,035.42 420,557.41
Promotion expenses 522,574.60 572,798.35
Equipment maintain fees 7,461.95 12,303.98
Others 3,761,749.10 4,450,696.99
Total 76,487,601.27 75,331,981.00
37.Administrative expenses
Preceding period
Items Current period cumulative
comparative
Employee benefits 45,533,495.59 44,564,523.09
Depreciation and amortization 5,655,087.34 6,115,801.58
Consulting, intermediary and legal fees 3,076,826.85 3,040,563.68
Office expenses 3,610,998.40 3,823,473.00
Lease expenses 1,760,994.92 2,210,789.52
Business entertainment 657,307.68 939,099.40
Travelling expense 508,195.35 1,053,212.45
Funding for Party Building 1,039,990.46 60,551.22
Others 61,842,896.59 1,382,250.37
Total 45,533,495.59 63,190,264.31
38.R&D expenses
Preceding period
Items Current period cumulative
comparative
Employee benefits 29,939,792.60 36,089,623.23
Travelling expenses 1,441,242.03 934,536.37
Depreciation and amortization 977,381.41 1,467,608.27
- 76 -
Preceding period
Items Current period cumulative
comparative
Material use 758,826.36 1,085,053.28
Intermediate test fee 1,456,770.43 1,681,442.67
Design fee 1,439,245.25 10,188.68
Others 2,008,854.26 1,422,026.84
Total 38,022,112.34 42,690,479.34
39.Financial expenses
Preceding period
Items Current period cumulative
comparative
Interest expenditures 9,780,203.87 10,747,567.42
Less: Interest income 550,442.21 781,316.52
Losses on foreign exchange -9,497.49 6,594.36
Less: gain on foreign exchange 10.20
Financial institution fees 177,315.62 105,949.33
Others 14.72 2,648.38
Total 9,397,594.51 10,081,432.77
40.Other income
Related to
Current period Preceding period
Items assets/Related to
cumulative comparative
earnings
Related to
Government grants related to income 5,197,105.02 1,702,585.06
earnings
Withholding and payment of individual tax service fee
61,550.43 29,712.14
return
Total 5,258,655.45 1,732,297.20
41.Investment income
Preceding period
Items Current period cumulative
comparative
Investment income from long-term equity investments
-9,632.66 128.65
under equity method
Investment gains from the disposal of trading financial
337,205.48
assets
Debt restructuring 588,868.84 82,093.23
Others 698,690.90 398,538.38
Total 1,277,927.08 817,965.74
42.Credit impairment loss
Preceding period
Items Current period cumulative
comparative
Bad debt loss of notes receivable 103,929.97 -619,152.29
- 77 -
Preceding period
Items Current period cumulative
comparative
Bad debt loss of accounts receivable -10,833,841.25 -6,782,976.13
Bad debt loss of other receivables 1,717,791.00 -3,451,939.79
Total -9,012,120.28 -10,854,068.21
43.Assets impairment loss
Preceding period
Items Current period cumulative
comparative
Inventory write-down loss -4,935,911.69 -7,084,963.73
Impairment losses on long-term equity investments -1,294,510.00
Total -4,935,911.69 -8,379,473.73
44.Gains on asset disposal
Preceding period
Items Current period cumulative
comparative
Gain on disposal of fixed assets -134,939.44 555,016.98
45.Non-operating revenue
Preceding Amount included
Current period
Items period in non-recurring
cumulative
comparative profit or loss
Unpaid payables 1,817,075.37 99,519.59 1,817,075.37
Penalty income 123,145.40 8,890.51 123,145.40
Others 218,585.64 3,093,180.22 218,585.64
Total 2,158,806.41 3,201,590.32 2,158,806.41
46.Non-operating expenditures
Preceding Amount included
Current period
Items period in non-recurring
cumulative
comparative profit or loss
Penalty expenditures 626,900.00 2,000.00 626,900.00
Overdue expenditure 8,365.01 161,691.92 8,365.01
Others 474,262.82 458,112.32 474,262.82
Total 1,109,527.83 621,804.24 1,109,527.83
47.Income tax expenses
(1) Details
Preceding period
Items Current period cumulative
comparative
- 78 -
Preceding period
Items Current period cumulative
comparative
Current income tax expense calculated in accordance
4,164,603.65 5,392,730.40
with the tax law and relevant provisions
Others -586,698.92 3,188,452.95
Total 3,577,904.73 8,581,183.35
(2) Accounting profit and income tax expense adjustment process
Items Amount
Profit before tax 851,408.06
Income tax expenses based on tax rate applicable to the parent company 212,852.02
Effect of different tax rate applicable to subsidiaries -3,226,220.13
Effect of prior income tax reconciliation -356,216.58
The effect of non-taxable income
The impact of non-deductible costs, expenses and losses 1,228,840.84
The effect of deductible temporary differences or deductible losses of deferred tax assets
not recognized in the previous period
The effect of deductible temporary differences or deductible losses on deferred tax assets
13,377,004.91
was not recognized in the current period
Deduction of R&D expenditures -7,658,356.33
Income tax expenses 3,577,904.73
48.Statement of cash flow
(1) Other cash receipts related to operating activities
Current period Preceding period
Items
cumulative comparative
Government grants 1,371,811.57 363,345.72
Interest income 676,743.53 1,460,033.50
Incomings and outgoings 46,691,196.33 33,075,711.39
Others 3,872,809.63 7,725,241.18
Total 52,612,561.06 42,624,331.79
(2) Other cash payments related to operating activities
Current period Preceding period
Items
cumulative comparative
Out-of-pocket expenses 60,579,555.09 50,305,591.96
Incomings and outgoings 27,973,575.62 32,253,196.38
Others 6,469,002.51 4,013,738.38
Total 95,022,133.22 86,572,526.72
(3) Other cash payments related to financing activities
Current period Preceding period
Items
cumulative comparative
Others 615,441.46 1,077,527.58
Total 615,441.46 1,077,527.58
- 79 -
(5) Other cash payments related to financing activities
Current increase Current decrease
Opening
Items Cash movement Non-cash Cash movement Non-cash Ending balance
balance
movement movement
Short-term
112,836,727.77 110,800,000.00 26,596.16 153,800,000.00 69,863,323.93
borrowings
Long-term
105,800,000.00 70,000,000.00 211,976.11 176,011,976.11
borrowings
Total 218,636,727.77 180,800,000.00 238,572.27 153,800,000.00 245,875,300.04
49.Supplement information to the cash flow statement
(1) Supplement information to the cash flow statement
Current period Preceding period
Items
cumulative comparative
I. Reconciliation of net profit to cash flow from operating
activities:
Net profit -2,726,496.67 -37,366,339.70
Add: Provision for assets impairment loss 4,935,911.69 8,379,473.73
Provision for credit impairment loss 9,012,120.28 10,854,068.21
Depreciation of fixed assets, depletion of oil and gas
assets, depreciation of productive biological assets, and 8,456,202.71 9,489,058.06
depreciation of investment real estate
Depreciation of right-of-use assets
Amortization of intangible assets 911,854.69 1,006,279.95
Amortization of long-term prepayments 1,874,667.27 1,462,172.62
Loss on disposal of fixed assets, intangible assets and
134,939.44 -555,016.98
other long-term assets (Less: gains)
Fixed assets retirement loss (Less: gains) 48,177.46
Gains from derecognition of financial assets at amortized
cost
Losses on changes in fair value (Less: gains)
Financial expenses (Less: gains) 9,780,203.87 10,747,567.42
Investment losses (Less: gains) -1,277,927.08 -817,965.74
Decrease of deferred tax assets (Less: increase)
Increase of deferred tax liabilities (Less: decrease)
Decrease of inventories (Less: increase) 42,809,348.69 15,635,851.24
Decrease of operating receivables (Less: increase) -4,652,275.38 24,164,049.92
Increase of operating payables (Less: decrease) -75,276,199.54 -73,773,886.58
Others
Net cash flows from operating activities -6,017,650.03 -30,726,510.39
II. Significant investing and financing activities not related to
cash receipts and payments:
Conversion of debt into capital
Convertible bonds due within one year
- 80 -
Current period Preceding period
Items
cumulative comparative
Fixed assets leased in under finance leases
III. Net changes in cash and cash equivalents:
Cash at the end of the period 164,177,680.11 164,384,741.39
Less: Cash at the beginning of the period 164,384,741.39 180,459,070.86
Add: Cash equivalents at the end of the period
Less: Cash equivalents at the beginning of the period
Net increase of cash and cash equivalents -207,061.28 -16,074,329.47
(2) Cash and cash equivalents
Preceding period
Items Current period cumulative
comparative
I. Cash -207,061.28 -16,074,329.47
Including: Cash on hand 343.39
Cash in bank on demand for payment 164,177,680.11 164,384,398.00
Other monetary funds readily available for payment
Money deposited with a central bank that can be used for
payment
Deposit of interbank funds
Interbank debits
II. Cash equivalents
Including: bond investments maturing within three months
III. Cash and cash equivalents at the end of the period 164,177,680.11 164,384,741.39
Including: restricted use of cash and cash equivalents by the
parent company or subsidiaries within the Group
50.Monetary items in foreign currencies
(1) Monetary items in foreign currencies
Closing balance in RMB equivalent at the
Items Exchange rate
foreign currencies end of the period
Cash and bank balances
Including: USD 33,665.08 7.0827 238,439.66
51.lease
1. As lessor
（1）Operating lease
Among them: Income related to variable lease payments not included in lease
Items Lease income
collections
- 81 -
Among them: Income related to variable lease payments not included in lease
Items Lease income
collections
Lease income 8,954,511.16
VI. R&D expenses
（一）List by nature of cost
Items Current period cumulative Preceding period comparative
Employee benefits 29,939,792.60 36,089,623.23
Travelling expenses 1,441,242.03 934,536.37
Depreciation and amortization 977,381.41 1,467,608.27
Material use 758,826.36 1,085,053.28
Intermediate test fee 1,456,770.43 1,681,442.67
Design fee 1,439,245.25 10,188.68
Others 2,008,854.26 1,422,026.84
Total 38,022,112.34 42,690,479.34
Among them: expensed research
38,022,112.34 42,690,479.34
and development expenditure
VII. Changes in the consolidation scope
(I) Subsidiaries liquidated this year:
The seventh branch of Nanjing Communication Equipment Factory: It has been liquidated in
December 2023, and the profit and loss and cash flow from January to December during the
liquidation period are included in the scope of consolidation.
Nanjing Putian Network Co., LTD. : The liquidation was completed in November 2023, and the
profit and loss and cash flow from January to November during the liquidation period were included
in the scope of consolidation
Chongqing Puhua Information Technology Co., LTD. : The liquidation has been completed in
September 2023, and the profit and loss and cash flow from January to September during the
liquidation period are included in the scope of consolidation
VIII. Interest in other entities
(I) Interest in subsidiaries
1. Composition of subsidiaries
- 82 -
（1）Details
Main Holding proportion (%)
Place of Business Acquisition
Subsidiaries operating
registration nature Direct Indirect Method
place
Nanjing Putian
Changle
Nanjing City Nanjing City Manufacture 50.70 Set up
Telecommunications
Equipment Co., Ltd.
Nanjing Putian
Telege Intelligent Nanjing City Nanjing City Manufacture 45.77 Set up
Building Ltd.
Nanjing South
Telecommunications Nanjing City Nanjing City Manufacture 96.99 3.01 Set up
Company Limited
Merger of
enterprises
Nanjing Mennekes
Nanjing City Nanjing City Manufacture 100.00 under
Electric Co., Ltd.
different
control
Merger of
Nanjing Putian enterprises
Datang Information Nanjing City Nanjing City Manufacture 40.00 under
Electronic Co., Ltd. different
control
（2）Notes
Remarks on inconsistency between holding proportion owned and voting rights proportion owned in
subsidiaries
a. The Company holds 45.767% of voting rights in Nanjing Putian Telege Intelligent Building Ltd.,
the other voting rights are decentralized. The Company has over half member of the Board of
Directors, and it not only controls this company but also has a privileged variable return by taking
part in Nanjing Putian Telege Intelligent Building Ltd’s related activity. The Company has the
ability to impact the amount of return and control over Nanjing Putian Telege Intelligent Building
Ltd.
b. The company holds Nanjing Putian Datang Information Electronics Co., LTD. 40% equity, the
company in Nanjing Putian Datang information electronics Co., LTD. As the number of board
members more than half of the company's board of directors, has the power of Nanjing Putian
Datang information Electronics Co., LTD., Be able to enjoy variable returns by participating in
relevant activities of Nanjing Putian Datang Information Electronics Co., LTD., and have the ability
to influence the amount of returns by using the power of Nanjing Putian Datang Information
Electronics Co., LTD., and be able to control Nanjing Putian Datang Information Electronics Co.,
LTD.
2. Significant not wholly-owned subsidiaries
Holding proportion Non-controlling Dividend declared to Closing balance of
Subsidiaries of non-controlling shareholders’ profit non-controlling non-controlling
shareholders or loss shareholders interest
Nanjing Putian 54.23% 14,587,076.16 10,846,600.00 61,222,078.98
- 83 -
Telege Intelligent
Building Ltd.
3. Main financial information of significant not wholly-owned subsidiaries
Closing balance
Subsidiaries Non-
Non-current Current Total
Current assets Total assets current
assets liabilities liabilities
liabilities
Nanjing Putian
Telege Intelligent 246,175,267.24 34,479,857.17 280,655,124.41 167,761,746.25 167,761,746.25
Building Ltd.
(continued)
Opening balance
Subsidiaries Non-
Non-current Current Total
Current assets Total assets current
assets liabilities liabilities
liabilities
Nanjing Putian
Telege Intelligent 220,616,216.69 35,771,362.31 256,387,579.00 150,992,737.00 150,992,737.00
Building Ltd.
Current period cumulative
Subsidiaries Total
Operating Cash inflow from
Net profit comprehensive
revenue operating activities
income
Nanjing Putian Telege Intelligent
368,898,076.14 27,498,536.16 27,498,536.16 21,821,020.40
Building Ltd.
(continued)
Preceding period comparative
Subsidiaries Total
Operating Cash inflow from
Net profit comprehensive
revenue operating activities
income
Nanjing Putian Telege Intelligent
368,838,452.07 28,193,877.68 28,193,877.68 14,659,448.46
Building Ltd.
(II) Interest in joint venture or associates
1. Aggregated financial information of insignificant joint ventures and associates
Closing
Opening balance/Preceding
Items balance/Current period
period comparative
cumulative
Joint ventures
Total carrying amount of investments 10,412,689.14 10,422,321.80
Proportionate shares in the following items:
Net profit -19,265.32 128.65
Total comprehensive income -19,265.32 128.65
- 84 -
VIV. Government subsidy
(一) Government grants recognised in profit or loss for the current period
Current period Preceding period
Items
cumulative comparative
VAT is collected and refunded 1,963,542.97 1,253,284.01
Subsidies for high-tech enterprises 260,000.00
Government grants related to earnings 898,251.01 139,183.65
Vocational training subsidy costs 30,382.40 31,202.84
Job stabilization subsidy 504,705.14 8,500.00
Tax relief for hiring poor employees who have established a file 7,800.00 7,800.00
other 30,406.14 2,614.56
Total 3,435,087.66 1,702,585.06
X. Risks related to financial instruments
The Company aims to seek the appropriate balance between the risks and benefits from its use of
financial instruments and to mitigate the adverse effects that the risks of financial instruments have
on the Company’s financial performance. Based on such objectives, the Company’s risk
management policies are established to identify and analyze the risks faced by the Company, to set
appropriate risk limits and controls, and to monitor risks and adherence to limits.
The Company has exposure to the following risks from its use of financial instruments, which
mainly include: credit risk, liquidity risk, and market risk. Management have deliberated and
approved policies concerning such risks, and details are:
(I) Credit risk
Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other
party by failing to discharge an obligation.
1. Credit risk management practice
(1) Evaluation method of credit risk
At each reporting date, the Company assesses whether the credit risk on a financial instrument has
increased significantly since initial recognition. When assessing whether the credit risk has increased
significantly since initial recognition, the Company takes into account reasonable and supportable
information, which is available without undue cost or effort, including qualitative and quantitative
- 85 -
analysis based on historical data, external credit risk rating, and forward-looking information. The
Company determines the changes in default risk of financial instruments during the estimated
lifetime through comparison of the default risk at the balance sheet date and the initial recognition
date, on an individual basis or a collective basis.
The Company considers the credit risk on a financial instrument has increased significantly when
one or more of the following qualitative and quantitative standards are met:
1) Quantitative standard mainly relates to the scenario in which, on the balance sheet date, the
probability of default in the remaining lifetime has risen by more than a certain percentage compared
with the initial recognition;
2) Qualitative standard mainly relates to significant adverse changes in the debtor’s operation or
financial position, present or expected changes in technology, market, economy or legal environment
that will have significant adverse impact on the debtor’s repayment ability;
(2) Definition of default and credit-impaired asset
The Company defines a financial asset as in default when the financial instrument meets one or more
of the following criteria, which are consistent with the definition of credit impairment incurred:
1) significant financial difficulty of the debtor;
2) a breach of binding clause of contract;
3) it is very likely that the debtor will enter bankruptcy or other financial reorganization;
4) the creditor of the debtor, for economic or contractual reasons relating to the debtor’s financial
difficulty, having granted to the debtor a concession(s) that the creditor would not otherwise
consider.
2. Measurement of expected credit losses
The key factors in the measurement of expected credit loss include the probability of default, loss
rate of default, and exposure to default risk.
3. The opening balance and closing balance of loss provision for financial instruments are detailed in
Notes V(3), V(4) and V(7) to these financial statements.
4. Exposure to credit risk and concentration of credit risk
The Company’s credit risk is primarily attributable to cash and bank balances and receivables. In
- 86 -
order to control such risks, the Company has taken the following measures:
(1) Cash and bank balances
The Company deposits its bank balances and other cash and bank balances in financial institutions
with relatively high credit levels, hence, its credit risk is relatively low.
(2) Receivables
The Company performs credit assessment on customers who uses credit settlement on a
regular/continuous basis. The Company selects credible and well-reputed customers based on credit
assessment result, and conducts ongoing monitoring on receivables, to avoid significant risks in bad
debts.
As the Company's accounts receivable risk points are distributed across multiple partners and
multiple customers, 14.16% of the Company's accounts receivable as of June 30, 2023 (June 30,
2022: 13.78%) originated from the top five customers with balances, and the Company does not
have significant credit concentration risk.
The maximum amount of exposure to credit risk of the Company is the carrying amount of each
financial asset on the balance sheet.
(II) Liquidity risk
Liquidity risk is the risk that the Company may encounter deficiency of funds in meeting obligations
associated with cash or other financial assets settlement, which is possibly attributable to failure in
selling financial assets at fair value on a timely basis, or failure in collecting liabilities from
counterparts of contracts, or early redemption of debts, or failure in achieving estimated cash flows.
In order to control such risk, the Company utilized financing tools such as notes settlement, bank
borrowings, etc. and adopts long and short financing methods to optimizing financing structures, and
finally maintains a balance between financing sustainability and flexibility. The Company has
obtained credit limit from several commercial Nanjing Putian Telecommunications Co., Ltd. 2021
Annual Report 187 banks to meet working capital requirements and expenditures.
Financial instruments classified based on remaining time period till maturity
Closing balance
Items Contract amount not
Carrying amount Within 1 year 1-3 years Over 3 years
yet discounted
Short-term borrowings 69,863,323.93 69,863,323.93 69,863,323.93
Notes payable
Accounts payable 397,593,766.27 397,593,766.27 397,593,766.27
- 87 -
Other payable 47,119,742.53 47,119,742.53 47,119,742.53
Non-current liabilities due
within one year
Subtotal 514,576,832.73 514,576,832.73 514,576,832.73
(Continued)
Opening balance
Items Contract amount not
Carrying amount Within 1 year 1-3 years Over 3 years
yet discounted
Short-term borrowings 112,836,727.77 112,836,727.77 112,836,727.77
Notes payable
Accounts payable 470,867,283.07 470,867,283.07 470,867,283.07
Other payable 59,206,281.08 59,206,281.08 59,206,281.08
Non-current liabilities due
within one year
Subtotal 642,910,291.92 642,910,291.92 642,910,291.92
(III) Market risk
Market risk is the risk that the Company may encounter fluctuation in fair value of financial
instruments or future cash flows due to changes in market price.
1. Interest risk
Interest risk is the risk that an enterprise may encounter fluctuation in fair value of financial
instruments or future cash flows due to changes in market interest. The Company’s fair value interest
risks arise from fixed-rate financial instruments, while the cash flow interest risks arise from floating
interest financial instruments. The Company determines the proportion of fixed-rate financial
instruments and floating interest rate financial instruments based on the market environment, and
maintains a proper financial instruments portfolio through regular review and monitoring. The
Company’s interest risk relates mainly to bank borrowings with floating interest rate
2. Foreign currency risk
Foreign exchange risk refers to the risk that the fair value or future cash flow of a financial
instrument may fluctuate due to changes in foreign exchange rates. The Company operates in
mainland China and its main activities are denominated in renminbi, so the Company's exposure to
foreign exchange movements is not material. The Company's foreign currency monetary assets and
liabilities at the end of the period are detailed in the relevant notes to the financial statements.
- 88 -
XI. Fair value
(I) Details of fair value of assets and liabilities at fair value at the balance sheet date
Level 1 fair value Level 2 fair value Level 3 fair value
Items Closing balance
measurement measurement measurement
I. Recurring fair value measurement
1. Receivables financing 32,347,277.62 32,347,277.62
2. Other equity instrument investments 741,953.00 741,953.00
Total assets at recurring fair value
32,347,277.62 32,347,277.62
measurement
Level 1 fair value Level 2 fair value Level 3 fair value Closing
Items
measurement measurement measurement balance
I. Recurring fair value
measurement
（一）Other equity instrument
741,953.00 741,953.00
investments
Total assets at recurring fair
741,953.00 741,953.00
value measurement
二、Non-continuous fair value
measurement
（一）Financing of receivables 32,347,277.62 32,347,277.62
Total assets that are not
consistently measured at fair 32,347,277.62 32,347,277.62
value
(II) Valuation technique(s) and key input(s) for level 3 fair value at recurring and non-recurring fair
measurement
1. For notes receivable, measured at par value.
2. For other equity instrument investments including Nanjing Yuhua Electroplating Factory and
Hangzhou Honyar Electrical Co.,Ltd., due to no changes of operating environment and conditions
and financial conditions of the invested enterprises, the Company measured at investment cost.
3. For other equity instrument investments including Beijing Likangpu Communication Equipment
Co., Ltd., due to deterioration of operating environment and conditions and financial conditions of
the invested enterprises, the Company measured at zero value.
XII. Related party relationships and transactions
(I) Parent company
- 89 -
Voting right
Registered Holding
proportion
Parent Business capital（Ten proportion over
Place of registration over the
company nature the Company
thousand yuan） Company
(%)
(%)
China Electric No.359 Jiangdong Middle Electronic
Power Rui Group Road, Jianye District, equipment 1,000,000,000.00 53.49 53.49
Co., LTD Nanjing manufacturing
The ultimate control party is China Electronics Technology Group Co., LTD.
(II) Status of the Company's subsidiaries
See Note "VIII. Interests in Other Entities" for details.
(III) Joint ventures and associates of the Company
For the important joint ventures or associates of the enterprise, see Note "VIII. Interests in Other
Entities", other joint ventures or associates that have related party transactions with the Company in
the current period, or have a balance of related party transactions with the Company in the previous
period.
Joint ventures or associates Relationships with the Company
SEI-Nanjing Putian Optical Network Co., Ltd. Joint ventures
(IV) Other related parties of the Company
Related parties Relationships with the Company
Nanjing Hikvision Digital Technology Co., LTD An affiliated company of the ultimate controlling party
Hangzhou Hikvision Technology Co., LTD An affiliated company of the ultimate controlling party
Nanjing Putian Hongyan Electric Technology Co., LTD An affiliated company of the ultimate controlling party
China Electronics Technology Group Corporation 23rd
An affiliated company of the ultimate controlling party
Research Institute
Putian Hi-Tech Industry Co., LTD An affiliated company of the ultimate controlling party
Nanjing Rice Information Technology Co., LTD An affiliated company of the ultimate controlling party
The 14th Research Institute of China Electronics
An affiliated company of the ultimate controlling party
Technology Group Corporation
The 28th Research Institute of China Electronics
An affiliated company of the ultimate controlling party
Technology Group Corporation
Nanjing Guorui Defense System Co., LTD An affiliated company of the ultimate controlling party
Nanjing Guorui Xinwei Software Co., LTD An affiliated company of the ultimate controlling party
Nanjing Rail Transit System Engineering Co., LTD An affiliated company of the ultimate controlling party
Tianbo Electronic Information Technology Co., LTD An affiliated company of the ultimate controlling party
Nanjing Lop Co., LTD An affiliated company of the ultimate controlling party
CLP Science and Technology Co., LTD An affiliated company of the ultimate controlling party
- 90 -
Related parties Relationships with the Company
Hebei Far East Communication System Engineering Co.,
An affiliated company of the ultimate controlling party
LTD
CLP Keteli Communication Technology Co., LTD An affiliated company of the ultimate controlling party
Taiji Computer Corporation Limited An affiliated company of the ultimate controlling party
Putian Rail Transit Technology (Shanghai) Co., LTD An affiliated company of the ultimate controlling party
The Seventh Research Institute of China Electronics
An affiliated company of the ultimate controlling party
Technology Group Corporation
Nanjing Lop Technology Co., LTD An affiliated company of the ultimate controlling party
Nanjing Meichen Microelectronics Co., LTD An affiliated company of the ultimate controlling party
CLP Oriental Communication Group Co., LTD An affiliated company of the ultimate controlling party
Orient Communications Co., LTD An affiliated company of the ultimate controlling party
Liyang Twenty-eight System Equipment Co., LTD An affiliated company of the ultimate controlling party
Zhongkexin Integrated Circuit Co., LTD. Nanjing
An affiliated company of the ultimate controlling party
Branch
Sun Create Electronics Co., LTD An affiliated company of the ultimate controlling party
Beijing Taiji Information System Technology Co., LTD An affiliated company of the ultimate controlling party
55th Research Institute of China Electronics Technology
An affiliated company of the ultimate controlling party
Group Corporation
CLP Rice Information System Co., LTD An affiliated company of the ultimate controlling party
China Putian Information Industry Co. LTD An affiliated company of the ultimate controlling party
China Electronics Technology Finance Co., LTD An affiliated company of the ultimate controlling party
Shanghai Putian Postcom Technology Co., LTD An affiliated company of the ultimate controlling party
Putian Information Technology Co., LTD An affiliated company of the ultimate controlling party
Putian Communications Co., LTD An affiliated company of the ultimate controlling party
CLP Technology (Nanjing) Electronic Information
An affiliated company of the ultimate controlling party
Development Co., LTD
Hangzhou Hikvision Digital Technology Co., LTD. Nanjing
An affiliated company of the ultimate controlling party
branch
Hangzhou Hongyan Electric Appliance Co., LTD An affiliated company of the ultimate controlling party
Beijing Likang general letter equipment Co., LTD A subsidiary of the company
Nanjing Putian Information Technology Co., LTD An affiliated company of the ultimate controlling party
(V) Related party transactions
1. Purchase of goods, receiving of services
Content of Current period Preceding period
Related parties
transaction cumulative comparative
CLP Technology (Nanjing) Electronic Information Telecommunication
1,833,079.7
Development Co., LTD products
Telecommunication
Nanjing Hikvision Digital Technology Co., LTD 84,168.12 1,289,950.45
products
- 91 -
Telecommunication
Hangzhou Hikvision Technology Co., LTD 61,862.75 639,084.20
products
Nanjing Putian Hongyan Electric Technology Co., Telecommunication
320,518.58
LTD products
China Electronics Technology Group Corporation
Testing fee 5,000.00
23rd Research Institute
Putian Hi-Tech Industry Co., LTD Service charge 255,471.65
2. Sale of goods, rendering of services
Current period Preceding period
Related parties Content of transaction
cumulative comparative
Telecommunication
Nanjing Rice Information Technology Co., LTD 11,250,659.92
products
The 14th Research Institute of China Telecommunication
9,571,757.06
Electronics Technology Group Corporation products
The 28th Research Institute of China Telecommunication
4,984,277.88 9,035,292.74
Electronics Technology Group Corporation products
Telecommunication
Nanjing Guorui Defense System Co., LTD 3,717,405.39
products
Telecommunication
Nanjing Guorui Xinwei Software Co., LTD 3,301,886.78
products
Nanjing Rail Transit System Engineering Co., Telecommunication
1,756,286.72 1,038,659.29
LTD products
Tianbo Electronic Information Technology Co., Telecommunication
1,693,466.88
LTD products
Nanjing Lop Co., LTD Service charge 1,470,258.45 434,176.15
Telecommunication
CLP Science and Technology Co., LTD 1,242,704.44 4,213,115.06
products
Hebei Far East Communication System Telecommunication
1,234,440.72 2,142,224.08
Engineering Co., LTD products
CLP Keteli Communication Technology Co., Telecommunication
396,800.90 3,150.44
LTD products
Telecommunication
Taiji Computer Corporation Limited 292,513.71 4,443,100.78
products
Putian Rail Transit Technology (Shanghai) Co., Telecommunication
270,357.52
LTD products
The Seventh Research Institute of China Telecommunication
252,293.57
Electronics Technology Group Corporation products
Telecommunication
Nanjing Lop Technology Co., LTD 175,932.31
products
Telecommunication
Nanjing Meichen Microelectronics Co., LTD 173,451.35
products
Telecommunication
CLP Oriental Communication Group Co., LTD 80,998.50 52,532.81
products
Telecommunication
Orient Communications Co., LTD 74,600.15
products
Liyang Twenty-eight System Equipment Co., Telecommunication
68,620.52 359,462.86
LTD products
Zhongkexin Integrated Circuit Co., LTD.
Contract processing 13,391.60 109,562.74
Nanjing Branch
CLP Technology (Nanjing) Electronic Telecommunication
10,619.47
Information Development Co., LTD products
Beijing Taiji Information System Technology Telecommunication
380,530.98
Co., LTD products
55th Research Institute of China Electronics Telecommunication
131,858.40
Technology Group Corporation products
Telecommunication
CLP Rice Information System Co., LTD 35,018.40
products
Nanjing Putian Hongyan Electric Technology Telecommunication
10,619.47
Co., LTD products
- 92 -
3. Our company acts as the lessor
Lease income \ expenses Lease income and
Name of lessee Status of leased assets recognized in the current expenses confirmed in the
period previous period
Income from rent and
Nanjing Lop Co., LTD 395,238.10 395,238.10
property fees
China Electronics Technology
Income from rent and
Group Corporation 14th Research 1,181,215.56
property fees
Institut
4. The company acts as the lessee：
Lease income \ expenses Lease income and expenses
Name of Lessor Status of leased assets recognized in the current confirmed in the previous
period period
Nanjing Putian Communication
Rent and management fee 275,229.36 839,675.19
Technology Industrial Park Co., Ltd.
5. Related party loans and interest expenses
Amount Commencement Maturity Whether the guarantee is
Name of related party
guaranteed date date mature
China Electric Power Rui Group
55.000.000.00 2023-04-03 2026-04-02 NO
Co., LTD
China Electric Power Rui Group
15.000.000.00 2023-06-25 2026-06-24 NO
Co., LTD
6. Related party entrusted loan and interest expense
Related transaction Current period Preceding period
Name of related party
content cumulative comparative
Potevio Company Limited Loan interest 4,454,856.94 7,741,475.85
China Electronic Technology Finance Company Interest on long-
1,881,791.67
Limited term loans
CLP Financial Leasing Co., LTD Other interest 62,917.43
7. Key management’s emoluments
Items Current period cumulative Preceding period comparative
Key management’s emoluments 2,829,012.00 3,156,438.00
(VI) Balance due to or from related parties
1. Balance due from related parties
Ending balance Opening balance
Items Name of related party Bad debt
Book balance Book balance Bad debt reserve
reserve
Bank deposits:
China Electronics Technology
53,098,903.02 24,074,373.95
Finance Co., LTD
Accounts
receivable:
Nanjing Rice Information
10,898,694.00 108,986.94
Technology Co., LTD
Shanghai Putian Postcom 8,755,534.00 8,755,534.00 8,755,534.00 8,755,534.00
- 93 -
Ending balance Opening balance
Items Name of related party Bad debt
Book balance Book balance Bad debt reserve
reserve
Technology Co., LTD
The 14th Research Institute of
China Electronics Technology 8,130,279.06 83,102.79
Group Corporation
Hebei Far East Communication
7,076,527.70 452,584.61 8,058,730.63 327,755.62
System Engineering Co., LTD
The 28th Research Institute of
China Electronics Technology 5,106,770.00 187,793.30 4,111,020.00 41,110.20
Group Corporation
Putian Information Technology
6,065,598.36 6,065,598.36 6,065,598.36 3,617,195.20
Co., LTD
Putian Communications Co.,
4,317,924.00 1,060,171.20 4,317,924.00 1,060,171.20
LTD
Nanjing Guorui Xinwei
3,500,000.00 35,000.00
Software Co., LTD
China Putian Information
3,222,253.45 2,926,570.09 5,519,204.83 4,357,744.25
Industry Co. LTD
Nanjing Guorui Defense
2,722,285.85 27,222.86
System Co., LTD
CLP Technology Co., LTD 2,085,679.20 100,536.79 2,988,000.00 29,880.00
Nanjing Rail Transit System
1,735,507.81 39,802.46 1,455,390.41 25,822.12
Engineering Co., LTD
Nanjing Lop Co., LTD 926,320.00 9,263.20 44,000.00 2,200.00
Putian Rail Transit Technology
395,458.66 6,454.16 430,422.40 4,304.22
(Shanghai) Co., LTD
Taiji Computer Corporation
261,274.32 10,416.12 888,289.70 8,882.90
Limited
Nanjing Meichen
196,000.00 1,960.00
Microelectronics Co., LTD
Sun Create Electronics Co.,
135,557.43 22,896.17 183,262.43 26,252.98
LTD
CLP Ketele Communication
44,838.50 448.39
Technology Co., LTD. (CLP)
Tianbo Electronic Information
31,160.00 311.6 416,834.00 4,168.34
Technology Co., LTD
Liyang 28 Suo System
54,065.80 540.66 190,083.00 9,504.15
Equipment Co., LTD
Orient Communications Co.,
20,599.99 206
LTD. (Headquarters)
CLP Technology (Nanjing)
Electronic Information 12,000.00 120
Development Co., LTD
Nanjing Lop Technology Co.,
7,500.00 75
LTD
Zhongke Chip Integrated
Circuit Co., LTD. Nanjing 65,333.00 653.33
branch
CLP Rice Information System
38,901.80 389.02
Co., LTD
CLP East Communication
29,900.00 299
Group Co., LTD
55th Research Institute of
China Electronics Technology 14,900.00 149
Group Corporation
Subtotal 65,701,828.13 19,895,594.70 43,573,328.56 18,272,015.53
Notes
Receivable:
- 94 -
Ending balance Opening balance
Items Name of related party Bad debt
Book balance Book balance Bad debt reserve
reserve
Tianbo Electronic Information
1,709,812.62 85,490.63
Technology Co., LTD
CLP Technology Co., LTD 1,772,820.00 88,641.00
Taiji Computer Corporation
980,897.36 49,044.87
Limited
Subtotal 1,709,812.62 85,490.63 2,753,717.36 137,685.87
Prepayments:
Hangzhou Hikvision
57,505.00 57,505.00
Technology Co., LTD
Hangzhou Hikvision Digital
Technology Co., LTD. Nanjing 2,766.00 2,766.00
Branch
Subtotal 60,271.00 60,271.00
Other
receivables:
Putian Information Technology
367,800.00 367,800.00 367,800.00 367,800.00
Co., LTD
China Putian Information
1,000.00 1,000.00 2,245,100.00 1,954,305.00
Industry Co. LTD
Nanjing Hikvision Digital
80,000.00 4,000.00 80,000.00 4,000.00
Technology Co., LTD
CLP Technology Co., LTD 31,100.00 1,555.00 91,100.00 4,555.00
Tianbo Electronic Information
141,000.00 7,050.00
Technology Co., LTD
Hangzhou Hongyan Electric
20,200.00 1,010.00
Appliance Co., LTD
The 23rd Research Institute of
China Electronics Technology 1,500.00 15.00
Group Corporation
Beijing Likang General Letter
28,912,122.71 28,912,122.71 28,912,122.71 28,912,122.71
Equipment Co., LTD
Subtotal 29,392,022.71 29,286,477.71 31,858,822.71 31,250,857.71
Total 149,962,837.48 49,267,563.04 102,320,513.58 49,660,559.11
2. Balance due to related parties
Project name Related Parties Closing balance Opening balance
Accounts payable:：
China Putian Information Industry Co. LTD 14,918,045.42 18,016,137.43
Hangzhou Hikvision Technology Co., LTD 504,393.96
Putian High-tech Industry Co., LTD 25,000.00 25,000.00
Subtotal 14,943,045.42 18,545,531.39
Contract liabilities:
China Putian Information Industry Co. LTD 3,727,418.22 4,690,537.30
The 14th Research Institute of China Electronics
272,253.45
Technology Group Corporation
Nanjing Lop Technology Co., LTD 46,017.70
Subtotal 4,045,689.37 4,690,537.30
- 95 -
Project name Related Parties Closing balance Opening balance
Other payables:
Putian High-tech Industry Co., LTD 2,993,604.93 3,981,366.18
Nanjing Putian Information Technology Co., LTD 2,467,412.69 2,525,332.52
Putian Information Technology Co. LTD 400,000.00 400,000.00
Putian Communications Co., LTD 200,000.00 200,000.00
China Putian Information Industry Co. LTD 130,927.50 118,973.06
China Putian Information Industry Group Co. LTD 9,580,000.00 9,580,000.00
Subtotal 15,771,945.12 16,805,671.76
XI. Commitments and contingencies
(I) Commitments
As of December 31st, 2023, the Company has no material commitments to disclose.
(II) Contingencies
As of December 31st, 2023, the Company had no material contingencies to disclose.
XIII. Events after the balance sheet date
In 2024, the Company expects to dispose of the equity of its subsidiary Nanjing Putian Changle
Communication Equipment Co., LTD. As of the date of the audit report, the transfer has not been
completed.
XIV. Other significant events
Segment reports
1. Identification basis for reportable segments
Reportable segments are identified based on operating segments which are determined based on the
structure of the Company’s internal organization, management requirements and internal reporting
system. The Company identified reportable segments based on products, which include video
conferencing products, integrated wiring product, electrical products, wiring products, and other
products. Assets and liabilities shared by different segments are allocated pro rata among segments.
The Company identified reportable segments based on products, assets and liabilities of each
segment are the actual amount of its proportion in assets and liabilities, and revenue from main
operations and cost of main operations are those generated or incurred by each product segment.
- 96 -
2. Financial information of reportable segments
Video conferencing Generic cable Intelligent electrical Communications infrastructure Inter-segment
Items Total
products products products products and others offsetting
Reven
ue
from 253,011,3
253,011,367.56 368,898,076.14 101,285,338.34 121,645,917.73 -26,506,325.47
main 67.56
operati
ons
Cost of
main 182,394,7
182,394,755.44 289,278,557.77 75,504,884.66 96,738,570.26 -24,231,659.46
operati 55.44
ons
Total - 241,492,2
241,492,240.02 280,655,124.41 149,539,569.27 381,173,687.88
assets 226,619,209.31 40.02
Total
- 142,325,9
liabiliti 142,325,998.43 167,761,746.25 94,844,899.06 469,532,619.11
132,043,685.68 98.43
es
XV. Notes to items of parent company financial statements
(I) Accounts receivable
1. Disclosure according to aging
Ages Closing balance Opening balance
Within 1 year 37,402,082.05 43,483,236.49
1 to 2 years 20,967,585.95 25,242,696.25
2 to 3 years 13,476,502.08 15,354,863.60
3 to 4 years 11,129,447.83 17,339,579.38
4 to 5 years 13,713,915.65 54,845,034.31
Over 5 years 148,465,760.33 103,377,145.03
Less: Allowance for doubtful accounts 164,641,104.04 155,462,979.31
Total 80,514,189.85 104,179,575.75
2. According to the bad debt calculation and withdrawal method classification disclosure
Closing balance
Categories Book balance Provision for bad debts
Provision
Amount % to total Amount
proportion (%)
Receivables with provision made on an individual
70,104,372.00 28.60 70,104,372.00 100.00
basis
Receivables with provision made on a collective
175,050,921.89 71.40 94,536,732.04 54.01
basis
Among them: Combination 1: aging method 173,611,186.43 99.18 94,536,732.04 54.45
Combination 2: related parties 1,439,735.46 0.82
Total 245,155,293.89 100.00 164,641,104.04 67.16
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Opening balance
Categories Book balance Provision for bad debts
Provision
Amount % to total Amount
proportion (%)
Receivables with provision made on an individual
68,961,269.79 26.56 68,961,269.79 100.00
basis
Receivables with provision made on a collective
190,681,285.27 73.44 86,501,709.52 45.36
basis
Among them: Combination 1: aging method 188,947,762.27 99.09 86,501,709.52 45.78
Combination 2: related parties 1,733,523.00 0.91
Total 259,642,555.06 100.00 155,462,979.31 59.88
（1）Receivables with provision made on an individual basis
Provision for Provision
Debtors Book balance Reasons
bad debts proportion (%)
Unable to
Dongpo Xi Laos Co., Ltd. 19,708,086.54 19,708,086.54 100.00
recover
Unable to
China Tower Corporation Limited 17,591,683.74 17,591,683.74 100.00
recover
Unable to
Mr. Xu 13,819,926.92 13,819,926.92 100.00
recover
Unable to
Putian Information Technology Co. LTD 4,413,141.91 4,413,141.91 100.00
recover
China Railway Communication Signal Shanghai Unable to
3,534,579.35 3,534,579.35 100.00
Engineering Group Co., LTD recover
Unable to
Others 11,036,953.54 11,036,953.54 100.00
recover
Total 70,104,372.00 70,104,372.00 100.00
（2）Receivables with provision made on a collective basis
Combination 1: Aging combination
Closing balance Opening balance
Ages Provision
Provision for Provision Provision for
Book balance Book balance proportion
bad debts proportion (%) bad debts
(%)
Within 1
36,144,924.85 361,449.25 1.00 42,251,540.94 422,515.41 1.00
year
1 to 2
20,764,777.69 1,038,238.88 5.00 24,720,638.80 1,236,031.94 5.00
years
2 to 3
13,441,752.08 1,344,175.21 10.00 11,437,299.07 1,143,729.91 10.00
years
3 to 4
7,211,883.30 2,163,564.99 30.00 17,339,579.38 5,201,873.81 30.00
years
4 to 5
12,837,089.60 6,418,544.80 50.00 29,402,291.26 14,701,145.63 50.00
years
Over 5
83,210,758.91 83,210,758.91 100.00 63,796,412.82 63,796,412.82 100.00
years
Total 173,611,186.43 94,536,732.04 54.45 188,947,762.27 86,501,709.52 45.78
Combination 2: related parties
Ages Closing balance Opening balance
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Provision Provision
Provision for Provision for
Book balance proportion Book balance proportion
bad debts bad debts
(%) (%)
Within 1
1,257,157.20 1,211,465.55
year
1 to 2 years 182,578.26 522,057.45
Total 1,439,735.46 1,733,523.00
3. Bad debt provision
Change in current period
Opening Closing
Categories To withdraw Cancel after Other
balance Accrual balance
or turn back verification changes
Provision for
155,462,979.31 12,591,192.33 3,413,067.60 164,641,104.04
bad debts
4. Current significant accounts receivable bad debt reserve transfer or recovery situation
The basis and rationality of
Debtors Book balance Turn back cause Recovery mode determining the ratio of the
original bad debt reserve
Proceeds from
China Railway
sales of previous The account age is long, and
Communication Signal
1,748,190.05 years are collect payment it is difficult to collect and
Shanghai Engineering
recovered in this reconcile the account
Group Co., LTD
period
Proceeds from
sales of previous The account age is long, and
China Telecom Group
1,664,877.55 years are collect payment it is difficult to collect and
Limited Henan branch
recovered in this reconcile the account
period
Total 3,413,067.60
5. Details of the top 5 debtors with largest balances
Proportion to the total
Provision for bad
Debtors Book balance balance of accounts
debts
receivable (%)
Dongpo Xi Laos Co., Ltd. 19,708,086.54 8.04 19,708,086.54
Mr. Xu 17,591,683.74 7.18 17,591,683.74
China Tower Corporation Limited 13,819,926.92 5.64 13,819,926.92
China United Network Communications Co.,
8,799,400.34 3.59 7,353,303.31
LTD. Henan branc
Nanjing Rice Information Technology Co.,
8,865,266.00 3.62 88,652.66
LTD
Total 68,784,363.54 28.07 58,561,653.17
(II)Other receivable
Items Closing balance Opening balance
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Items Closing balance Opening balance
Dividends receivable 19,400,000.00 600,000.00
Other receivables 20,740,274.42 24,727,107.09
Total 40,140,274.42 25,327,107.09
1. Dividends receivable
（1）Details
Items Closing balance Opening balance
Nanjing Putian Datang Information Electronics Co., Ltd. 19,400,000.00 600,000.00
2. Other receivable
（1）Other receivable categorized by nature
Items Closing balance Opening balance
Temporary payment receivable 54,281,249.32 55,986,690.26
Deposit 4,229,786.49 7,751,311.73
Travel allowance 401,203.05 442,731.30
Others 1,133,923.15 1,721,849.52
Less: Allowance for doubtful accounts 39,305,887.59 41,175,475.72
Total 20,740,274.42 24,727,107.09
（2）Age analysis
Ages Closing balance Opening balance
Within 1 year 859,803.13 23,014,515.42
1 to 2 years 19,546,598.16 1,563,414.00
2 to 3 years 1,052,514.00 1,647,443.32
3 to 4 years 1,522,193.51 2,415,479.37
4 to 5 years 2,399,479.37 2,991,891.40
Over 5 years 34,665,573.84 34,269,839.30
Less: Allowance for doubtful accounts 39,305,887.59 41,175,475.72
Total 20,740,274.42 24,727,107.09
（3）Changes in provision for bad debts
Phase I Phase II Phase III
Items 12-month Lifetime expected Lifetime expected Total
expected credit credit losses (credit credit losses
losses not impaired) (credit impaired)
Opening balance 10,218,687.21 30,956,788.51 41,175,475.72
Opening balance in the current
10,218,687.21 30,956,788.51 41,175,475.72
period
- 100 -
Phase I Phase II Phase III
Items 12-month Lifetime expected Lifetime expected Total
expected credit credit losses (credit credit losses
losses not impaired) (credit impaired)
--Transferred to phase II
--Transferred to phase III
--Reversed to phase II
--Reversed to phase I
Provision made in the current
-1,890,894.52 21,306.39 -1,869,588.13
period
Provision recovered in current
period
Provision written off in current
period
Other changes
Closing balance - 8,327,792.69 30,978,094.90 39,305,887.59
（4）Provision for bad debts
Change in current period
Opening Closing
Categories To withdraw or Cancel after
balance Accrual Other changes balance
turn back verification
Losses on bad
41,175,475.72 -1,869,588.13 39,305,887.59
debts
（5）Details of the top 5 debtors with largest balances
Proportion
to the total
Nature of Closing balance of Provision for
Debtors Ages
receivables balance other bad debts
receivables
(%)
Temporary
Beijing Likangpu Telecommunications
payment 28,912,122.71 Over 5 years 48.15 28,912,122.71
Equipment Co.,Ltd.
receivable
Temporary 4-5year179,184.19，
Nanjing Putian Communication
payment 805,545.63 Over 5 years 1.34 805,545.63
Industry Co., Ltd.
receivable 626,361.44
Total 29,717,668.34 49.49 29,717,668.34
(III) Long-term equity investments
Closing balance Opening balance
Items Provision for Carrying Provision for Carrying
Book balance Book balance
impairment amount impairment amount
Investments in
103,667,928.23 1,294,510.00 102,373,418.23 113,409,068.64 1,294,510.00 112,114,558.64
subsidiaries
Investments in
associates and 10,412,689.14 10,412,689.14 10,422,321.80 10,422,321.80
joint ventures
Total 114,080,617.37 1,294,510.00 112,786,107.37 123,831,390.44 1,294,510.00 122,536,880.44
1. Investments in subsidiaries
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Provision for Closing balance
Opening Closing
Investees Increase Decrease impairment made of provision for
balance balance
in current period impairment
Nanjing Putian
Changle
2,610,457.00 2,610,457.00
Communication
Equipment Co., Ltd.
Nanjing Putian
Telege Intelligent 3,320,003.45 3,320,003.45
Building Ltd.
Nanjing Southern
33,175,148.00 33,175,148.00
Telecom Co., Ltd.
Nanjing Mennekes
57,831,012.71 57,831,012.71
Electric Co., Ltd.
Nanjing Putian
Datang Information 5,436,797.07 5,436,797.07
Electronics Co., Ltd.
Nanjing Putian
Communication 1,294,510.00 1,294,510.00 1,294,510.00 1,294,510.00
Technology Co., LTD
Chongqing Puhua
Information 2,000,000.00 2,000,000.00
Technology Co., Ltd.
Nanjing Putian
7,741,140.41 7,741,140.41
Network Co. LTD
Total 113,409,068.64 9,741,140.41 113,409,068.64 1,294,510.00
- 102 -
2. Investments in associates and joint ventures
Increase/Decrease
Investment Closing
Opening Adjustment in Cash Closing balance of
Investees income Changes
balance Investments Investments other dividend/Profit Provision for balance provision for
recognized in other Others
increased decreased comprehensive declared for impairment impairment
under equity equity
income distribution
method
I. Joint ventures
SEI-Nanjing Putian
Optical Network 10,422,321.80 -9,632.66 10,412,689.14
Co., Ltd.
Total 10,422,321.80 -9,632.66 10,412,689.14
- 103 -
(IV) Operating revenue/Operating cost
1. Operating income and operating costs are classified by major categories
Current period cumulative Preceding period comparative
Items
Revenue Cost Revenue Cost
I.Main operations 86,997,690.84 75,517,253.16 114,398,871.87 103,317,341.26
II.Other operations 4,391,233.26 471,932.73 3,945,565.52 3,820,744.62
Total 91,388,924.10 75,989,185.89 118,344,437.39 107,138,085.88
2. Operating income in the current period is classified according to the time of revenue recognition
Income from main Other business
Revenue recognition time
business income
Confirm at a certain point 86,997,690.84 4,391,233.26
3.Description of performance obligations
The nature Whether it The company The company
Meet Important of the goods is the accepts the accepts the
Projects performance payment the company principal money expected money expected
obligations terms promises to responsible to be returned to to be returned to
transfer person the customer the customer
Pay in
Selling Customers installments
Video
video accept items according to Warranty Period
conferencing is There is no
conferencing or sign for the time node Warranty
Products
products merchandise agreed in the
contract
4.Description of apportionment to remaining performance obligations
The amount of revenue corresponding to the performance obligations that have been contracted
but not yet performed or completed at the end of this report is 17,844,800 yuan, of which:
17,844,800 yuan is expected to be recognized in 2024.
(V) Investment income
Current period Preceding period
Items
cumulative comparative
Investment income from long-term equity investments under cost method 28,553,400.00 9,153,400.00
Investment income from long-term equity investments under equity method -9,632.66 128.65
Investment income from disposal of long-term equity investments 4,735,386.18
Debt restructuring gains 588,868.84
Others 340,936.63 1,104,350.78
Total 34,208,958.99 10,257,879.43
XVI. Other supplementary information
- 104 -
(I) Schedule of non-recurring profit or loss
Previous period amount
Items Amount Before the After the
adjustment adjustment
Profit and loss on disposal of non-current assets, including the
-134,939.44 506,839.52 506,839.52
write-off part of the asset impairment provision
Government subsidies included in the current profit and loss
(closely related to the business of the enterprise, except those
1,441,162.29 210,513.19 210,513.19
enjoyed in accordance with the national unified standard quota
or quantitative government subsidies)
Allowance for impairment reversal of receivables tested
3,413,067.60
separately for impairment
Gains and losses on debt restructuring 588,868.84
Other non-operating income and expenses other than those
1,049,278.58 2,896,463.54 2,896,463.54
described above
Other profit and loss items that meet the definition of non-
717,457.47 817,837.09 817,837.09
recurring profit and loss
Minus: Impact of income tax 224,119.31 160,760.51 160,760.51
Amount of influence of minority shareholders 576,967.41 426,894.09 426,894.09
Total 6,273,808.62 3,843,998.74 3,843,998.74
"Other items of profit or loss that meet the definition of non-recurring profit or loss" :
Items Amount involved
Liquidate investment income generated by subsidiaries 717,457.47
(II) Return on net assets(RONA) and earnings per share(EPS)
EPS (yuan/share)
Weighted average RONA (%)
Profit of the reporting period Basic EPS Diluted EPS
Current Preceding Current Preceding Current Preceding
period period period period period period
Net profit attributable to shareholders of
-124.58 -114.39 -0.08 -0.22 -0.08 -0.22
ordinary shares
Net profit attributable to shareholders of
ordinary shares after deducting non- -170.87 -123.67 -0.11 -0.24 -0.11 -0.24
recurring profit or loss
Board of Directors of
Nanjing Putian Telecommunications Co., Ltd.
April26, 2024
- 105 -
